The Best NNN Property Investments for 2023: Dollar General, Retail Pharmacies, Car Washes
The Best NNN Property Investments for 2023: Dollar General, Retail Pharmacies, Car Washes
Speaking about NNN tenants in the next year, experts predict a bright future for this sphere. At least specific indicators point to this. The situation seems optimistic for those who are interested in a triple net lease, but we still need specifics when we talk about conditions. To have a clear strategy that will allow you to move forward in your practice this year, you need to know what properties are the most beneficial.
To make your investment as successful as possible in the new year, we want to share a selection of properties that we consider the best in 2023, as well as the benefits that they can bring to you. To invest wisely, you need to be well-acquainted not only with the options but also with the benefits and conditions of such investments. And this, in turn, depends on the ability of businesses to adapt to the pandemic. Let’s have a look at some of the profitable businesses.
In this article, we will discuss the future of the triple net leases, the best NNN tenants in 2023, and what opportunities the sphere holds.
Best NNN Properties in 2023
Some of the properties are especially beneficial for triple-net leases in 2023. Mostly because of the business models they have and also thanks to comfortable investment opportunities without extra effort and a good inflow of profit. During times marked by general instability, having a reliable cash flow is especially important.
The ability of a business to adapt well to a pandemic and constantly improve is essential for a triple net lease. If a company grows, uses new equipment, automates its processes, and implements new technologies, its financial future is much brighter. Now, quick response to general technological progress and the ability to implement the necessary changes means prospects for development and stability.
One of their significant advantages is that they can effectively adjust to the pandemic, which is vital for maintaining productive workflows. Not all the complications of a pandemic can be foreseen, so a flexible business model and reliable conditions will help businesses survive in difficult times.
These retail properties require little management effort, so your lease will be profitable and will free you up from extra duties. Take a closer look at these property options, and they will give you a lot more flexibility than other random variants.
Dollar General is known for being a good choice in almost any economic environment and will help enrich almost any portfolio, even in difficult times. They can also provide you with the opportunity of responsibility-free ownership – that is, they are an opportunity for an NNN lease at its best. Dollar General is a popular option for NNN lease due to its comfort and profitability.
Single-tenant drug stores are especially advantageous as they gain much of their value from real estate. Retail pharmacies are now being upgraded significantly, which means they have a better chance of surviving in unstable business realities.
In addition, the use of innovation reaps significant benefits for them. Needs-based products will always be popular. And convenient conditions for investment will play into your hands. Also, they possess a lot of additional benefits, such as:
- 1. Responsibility-free ownership.
2. An opportunity for corporate-guaranteed leases.
3. Options for a lease extension.
Gas stations, as well as convenience stores, are now more popular than ever before due to the number of grocery essentials and additional goods they sell. They are a great investment for any financial requirement and be beneficial for your portfolio as well.
Fast-Food/QSRs with Drive-Thrus
After the changes caused by the pandemic triggered progress in many businesses, major fast-food brands like McDonald’s, Starbucks, and KFC have adopted a new business model that has proven itself to be more efficient and has much more potential. It includes less indoor square footage, more digital services, and other innovations. Also, technologies like AI and mobile app ordering allow fast-food brands to stay more competitive and improve different processes with the help of the potential technologies present.
Car washes, especially express car washes, present a great opportunity for investment. This is a type of service that is mostly automated and uses certain types of equipment to transport and wash a car through a tunnel. Owning a car wash can give you a stable flow of cash, predictability, and comfort. This type of property usually requires little management, so you won’t need to spend time and energy on additional tasks.
Besides that, car washes usually present an opportunity for absolute NNN leases, as the tenant is responsible for practically all expenses related to the property. Express car washes are now becoming a more and more popular option for triple-net lease.
Some of the Other Practical Options for Investing in 2023
There are also other retail property options that are suitable for triple net leases and which you should take a closer look at if, for one reason or another, the options that we listed earlier do not suit you. These options, such as early education centers, provide benefits such as minimal landlord responsibilities as well as lease extension options. If you need a stable income and comfortable conditions, pay attention to these options as well. Other options for investments that can be very beneficial include:
- auto parts stores;
medical and dental clinics;
early education centers and childcare assets.
Since these businesses offer essential services and products, in almost any economic environment, they can be profitable. Their simplicity is also an advantage.
Benefits You Can Gain with These Properties
Since 2023 is considered a good enough time to invest, you need to understand what specific benefits this type of investment can offer you. It is also necessary to take into account limiting factors since even stable time cannot do without them. So, some of the benefits of investing in the above-mentioned fields in 2023 include the following:
- 1. Convenience.
2. The possibility for steady and predictable income.
3. Worry-free investing.
4. Competitive returns.
Imagine the benefits of worry-free investing, which also relieves you of unnecessary duties and does not require management. You won’t need to bother yourself with unnecessary details. Just focus on investing and making a profit. Competitive returns will give you a greater sense of stability. For more experienced professionals, these opportunities will also be extremely beneficial because you can significantly improve your results.
What Are the Potential Challenges, and How Can You Effectively Overcome Them?
Like any period of time, the next year has its challenges, so the better you are ready to solve them, the more smoothly everything will go for you. Since the impact of the pandemic has not yet subsided, there are difficulties, such as the need for sufficient experience to invest in volatile times and risks and the need to convince a seller that you are experienced enough. However, these difficulties can be resolved easily if you prepare for them.
How Can You Easily Overcome the Potential Challenges
If you are ready for difficulties, they will go more smoothly for you. Since many of them are now related to reputational and financial issues, it is important to be able to make a good statement about yourself and take care of your good name.
These are aspects that are important at any time, but now almost all of your investment activity depends on them. In terms of finances, you also have many opportunities to avoid unnecessary risks. Some of the steps that will give you the ability to overcome challenges include:
- having the ability to close all cash;
The opportunity to receive financing after you buy the property will allow you to avoid unnecessary risks;
The opportunity to collaborate with advisory groups who have sufficient expertise will help you present yourself as a professional with a good name;
You can use the already-established reputation to convince sellers effectively.
You can usually get financing after you purchase the property (depending on your banking relationships, the strength of the location, strength of the operator).
As you can see, sometimes cooperation and reputation building can help in different situations in a non-obvious way. In addition, these are long-term opportunities that can save you from dangers in the future. And the ability to convince will come in handy if you plan to enlist the help of other professionals in the future.
So, in order to invest comfortably and profitably this year, choose the above types of properties and keep in mind the limitations that you will face. Also, remember that the market is changing, so conditions can change at any time. Invest while it’s profitable, and you’ll get the most out of it.
Do not be afraid of the difficulties that will appear on your way. There are risks at any time and for everyone. Use the full range of opportunities that you have now, cooperate with advisory groups and increase your experience.
Now investing is still a profitable business because the profit you get and the stability you feel will stay with you forever, despite all the risks. Stability now means growth in the future, so don’t be afraid to invest and get even better at it.
« Previous Next »