Chick-fil-A Real Estate: Are Corporate NNN Property Leases Worth the Investment in 2021?

If you’re into real estate, you’ve probably heard about triple net leases and the ROI these properties generate. Well, the prospect of getting regular paychecks as long as a lease agreement is running seems exciting.

That said, did you know that commercial investors are looking to invest in NNN investments properties that they can lease out to franchises. While there are so many alternatives, one option currently gaining traction is Chick-fil-A real estate structures. 

When you’re able to get a chick fil a real estate property, it’s more than possible to turn it into a hot NNN property real quick and eke out a corporate lease agreement. Depending on the deal, you’re sure of making lucrative rent in the years to come.

At this juncture, you might be yearning to find out what benefits there are to this investment and how the corporation and yourself take advantage of this investment form, right?

In this article, we’ll be covering some significant advantages and drawbacks linked with this Turkish Citizenship by Investment. Without further ado, let’s head into the world of corporate NNN leases.

Triple Net Leases: Why Corporations Favor These Property Forms

When you’re opportune to acquire a Chick-fil-A NNN for sale, it’s expected that you receive lease bids from top businesses or franchises. That said, have you ever wondered why? 

If you’ve noticed, branding is everything for a franchise. Therefore, having a high-credit tenant in the foreseeable future is feasible if your NNN property has all the makings of a successful business venture, such as a perfect location and building design. 

What do these tenant types want? It’s pretty straightforward. Typically, they want total control. Consequently, they’re in charge of paying all the expenses and fees associated with that property. 

All you need as a landlord or investor is to sit back and get those cheques rolling in like clockwork. Yes, it’s that easy. 

However, if you’re in search of a lease agreement that’ll favor you in the long run, you might want to sign lease agreements with:

• Grocery stores
• Convenience stores
• Drug stores or pharmacies
• Regular dollar stores
• Healthcare clinics

Corporate Triple Net Leases: Advantages and Drawbacks for the Landlord

When you get a Chick-fil-A franchise, it’s normal to be over the moon since the possibilities associated are limitless. However, it’s crucial to note that this journey isn’t smooth sailing as there might be some cons on the way. 

Let’s take a closer look at the pros and cons you might come across as a landlord. They include:

Pros

• Reduced Responsibility as a Landlord

Going with a Chick-fil-A real estate NNN property has many benefits, and reduced responsibility is undoubtedly one of them. 

When you enter into a lease agreement with a franchise, most expenses (property maintenance, taxes accrued by the structure, and other insurance claims) aren’t yours to shoulder.

Instead, the tenant manages everything on your NNN structure until a lease draws to an end. Therefore, it isn’t surprising that investors can make NNN property purchases anywhere around the country. It’s that convenient.

• Possibility of Long Term Tenancy

Usually, NNN leases last between 10 to 15 years. However, if you’re fortunate to seek a tenant with a strong credit score, you can add more years to that lease agreement.

Finding a long-term tenant removes all the hassles attached to looking for another tenant (re-tenanting). During this period, you’re sure of getting rent as at when due.

• A Sure Way to Garner Passive Income Effectively

If you’re looking for a real estate investment that grants you “easy to make” passive income as time goes by, NNN properties are the way to go these days. 

Here, as long as you’ve signed a contract with a long-term tenant that’s financially independent and able to meet up rent, you’re sure of making income even when you’re nowhere near your property.

Nonetheless, some investors might hire a property manager to collect rent and engage in inspections. If you do this, you might never need to show up at your NNN property since you have everything sorted.

• Transfer Leases When You Deem Fit

Just like what’s obtainable at other real estate firms, triple net leases allow transfer between different parties at any time. 

Here’s how this works:

Buy a Chick-fil-A real estate NNN and finance it to reach the industry’s standard. When you’ve got a tenant that can opt-in for a long lease, you can decide to leave the scene and flip it to another NNN investor. 

Now, the investor you’ve just flipped your property to can repeat the same process. Albeit tagged a continuous cycle; everything boils down to the investor.

Cons

• Capped Income

It’s known that a landlord’s only income source from an NNN is rent. That said, when a lease is in effect, rent doesn’t increase for the duration of that agreement. 

Consequently, you’ll have to wait until an existing lease agreement expires. Only then can you renovate the building and revise the former lease agreement to allow for increased rent.

• The Issue of Liability

While tenants are responsible for all payments and any other expenses attached to your property, there might be a select scenario where meeting up with these expenses isn’t feasible. 

Consequently, you (the landlord) bear the ultimate share of liability when things go south, making you defenseless. 

• Charges After an Existing Lease

When a tenant’s lease is up, and there’s no one to re-lease it immediately, you’ll have to settle bills that crop up during that period.

Asides from that, since leases might last up to 25 years, a landlord has to renovate that property to meet the requirements of prospective tenants in the market. This activity consumes time and, invariably, a large chunk of cash.

Major Takeaway

While corporate NNN leases feature mouth-watering values in terms of rent, it’s essential to understand that there’s no fixed result associated with this real estate investment. Here, you must be prepared to encounter the positives and the negatives.

However, if you’re to get positive results most of the time, you might want to go with a Chick-fil-A NNN franchise as these structures are highly favored amongst top franchises. 

Although you might have to pay a Chick-fil-A franchise fee in 2021, it’s worth the trade-off. To see what Chick-fil-A structure is available for sale near you, head to buynnnproperties and make a purchase that agrees with your budget.