Most investors start the NNN search the wrong way—browsing LoopNet listings and wondering why everything looks overpriced or picked over. The best triple net lease deals rarely surface on public marketplaces first. They flow through broker networks, 1031 exchange channels, and direct relationships before they ever hit a listing portal.
This guide walks through the entire acquisition process: where to find deals worth pursuing, how to evaluate them quickly, and the mechanics of getting from letter of intent to closing.
Where NNN Deals Come From
The NNN market has distinct sourcing channels, each with different deal quality and pricing dynamics.
Broker Networks
Net lease brokers at firms like Marcus & Millichap, Stan Johnson Company, and SRS Real Estate Partners handle the majority of marketed NNN transactions. Getting on their distribution lists is step one. National brokers see the most deal flow, but regional firms often surface off-market opportunities that the larger shops pass on. Most brokers want to understand your acquisition criteria before sending listings—have a clear buy box (property type, cap rate range, tenant credit quality, geography, price range) ready before reaching out.
1031 Exchange Accommodators
Qualified intermediaries handle billions in exchange capital annually, and many maintain buyer databases. Exchange-driven sellers often accept slightly lower cap rates because they need to close within their 180-day window. Registering with major accommodators like IPX1031 or Asset Preservation puts you on their match list.
Developer Build-to-Suit Pipeline
Developers who build single-tenant properties for chains like Dollar General, O'Reilly Auto Parts, or Starbucks frequently sell the completed asset to investors. These fresh builds come with brand-new 15–20 year leases and are sold at cap rates reflecting current market conditions. National developers like ADLS, Realty Associates, and Fortis Net Lease regularly market new inventory.
Direct Outreach
Some investors skip brokers entirely and mail or cold-call property owners directly. County tax records identify who owns every NNN property in a target market. Direct deals eliminate commission (typically 4–6% of sale price) and reduce competition. The trade-off is volume—you may contact hundreds of owners to find one willing seller.
Online Marketplaces
LoopNet, Crexi, and CREXi aggregate listings from thousands of brokers. The inventory skews toward properties that did not sell through private channels first, but deals do exist—especially for smaller assets under $2 million that larger investors ignore. Set search alerts for your criteria and review new listings daily.
Building Your Buy Box
Before evaluating any deal, define your acquisition criteria. A clear buy box prevents scope creep and speeds up decision-making.
Criteria to define:
Tenant credit quality: Will you accept non-rated tenants, or only investment-grade credits (BBB- and above)? This single factor determines your cap rate range and financing options. Investment-grade tenants trade at 5.0–6.5% cap rates; non-rated tenants trade at 7.0–9.0%.
Lease term remaining: Most lenders want at least 10 years remaining. Properties with under 5 years left are riskier but trade at higher cap rates—sometimes 100–200 basis points above comparable long-term leases.
Geography: Do you want properties within driving distance for personal oversight, or are you comfortable with truly passive remote ownership? NNN properties in secondary markets often yield 50–100 bps more than identical tenants in primary metros.
Property type: Freestanding retail, strip center outparcels, medical offices, and industrial all trade differently. Retail NNN is the most liquid and best understood by lenders.
Price range: Your equity and financing capacity set the ceiling. A typical NNN acquisition requires 25–35% equity down. SBA 504 loans can reduce this to 10–15% for owner-occupied or smaller deals.
How to Evaluate a Deal in 15 Minutes
Experienced NNN investors develop a rapid screening process. Before requesting offering memorandums or scheduling tours, answer these five questions:
1. What is the tenant's credit quality?
Look up the corporate credit rating (Moody's or S&P). If the tenant is franchisee-operated, the guarantor is the franchisee—not the national brand. A Taco Bell franchisee with three locations is a fundamentally different credit than Yum! Brands, Inc.
2. How much lease term remains?
Calculate years and months to expiration, including option periods. Lenders underwrite to primary term, not options. A property with 4 years remaining and two 5-year options is a 4-year deal from a financing perspective.
3. What is the rent per square foot relative to the market?
If the tenant pays $25 PSF and comparable space leases for $18 PSF, that above-market rent creates re-leasing risk at expiration. Conversely, below-market rents provide built-in upside—the property's value increases if you can reset to market rates at renewal.
4. Does the cap rate compensate for the risk?
Compare the offered cap rate against current Treasury yields and spreads for similar assets. In early 2026, NNN cap rates for investment-grade tenants average 150–200 basis points above the 10-year Treasury. If a deal does not meet that spread, you are being undercompensated for real estate risk.
5. What is the location quality?
Even with a strong tenant, location matters for residual value. A Dollar General in a growing suburb has better exit optionality than the same tenant on a rural highway. Check population growth, household income, and traffic counts within a 3-mile radius.
The Acquisition Process
Once you identify a target property, the transaction follows a predictable sequence.
Letter of Intent (LOI)
Submit a non-binding LOI outlining your offered price, due diligence period (typically 30–45 days), earnest money deposit (usually 1–3% of purchase price), financing contingency, and target closing date. The LOI is a negotiation document—sellers often counter on price, deposit amount, or due diligence timeline.
Due Diligence
After an executed LOI, the clock starts on your inspection period. Key items to review: the actual lease document (not the broker summary), tenant financial statements or credit rating confirmation, Phase I environmental assessment, property condition report, title commitment, survey, rent roll and payment history, and local zoning confirmation.
For NNN properties, the lease document is the most critical item. Verify which expenses the tenant is actually responsible for—some leases marketed as "NNN" still leave the landlord responsible for roof, structure, or parking lot maintenance. These are double net leases with NNN pricing, and they carry more landlord expense than expected.
Financing
NNN properties benefit from straightforward financing because the long-term lease provides predictable cash flow. Common loan structures: conventional bank loans (60–75% LTV, 5–7 year terms), CMBS loans (65–75% LTV, 10-year terms, typically for deals above $2M), SBA 504 loans (up to 90% LTV for qualifying buyers), and life insurance company loans (competitive rates for investment-grade tenants with long lease terms). Get pre-qualified before submitting offers. Your DSCR (debt service coverage ratio) determines maximum loan size—most lenders require 1.25x minimum.
Closing
NNN closings are mechanically similar to residential transactions but involve commercial title insurance, estoppel certificates from the tenant confirming lease terms, and assignment of any existing property management or maintenance contracts. Budget 2–4% of purchase price for closing costs including title insurance, legal fees, environmental reports, and lender fees.
Common Mistakes to Avoid
Buying the cap rate, not the credit. A 9% cap rate on a non-rated franchisee with 6 years left is not better than a 5.5% cap rate on Walgreens with 20 years remaining. The Walgreens deal generates more predictable income, finances better, and sells easier.
Ignoring franchise vs. corporate guarantees. Always verify who guarantees the lease. A corporate guarantee from McDonald's Corporation is investment-grade. A personal guarantee from a 3-unit McDonald's franchisee is a small-business credit risk.
Skipping the lease audit. Broker summaries sometimes omit landlord responsibilities buried in lease amendments. Read the entire lease, including all amendments and side letters.
Overpaying for new construction. Developer-sold build-to-suits trade at premium pricing because the lease is new and the building is fresh. Compare the cap rate to seasoned properties with the same tenant—you may get better value buying a 5-year-old property with 10 years remaining.
Not budgeting for capex at lease expiration. Even on NNN properties, landlords often need to invest in tenant improvements or building updates to re-lease the space. Budget 5–10% of the property's value for turnover costs.
Next Steps
Build your network first: register with 3–5 net lease brokers, sign up for marketplace alerts on Crexi and LoopNet, and connect with 1031 exchange accommodators. Run the numbers on every deal that crosses your desk using our cap rate calculator, NOI calculator, and DSCR calculator to build pattern recognition. The best NNN investors underwrite dozens of deals for every one they close—speed and selectivity compound over time.