Triple net lease (NNN) retail properties offer Philadelphia exchange investors passive income with minimal management responsibilities. These assets typically feature long-term leases with credit tenants who assume responsibility for property taxes, insurance, and maintenance costs.
The Philadelphia region's NNN retail market includes freestanding single-tenant properties, multi-tenant strip centers, and ground lease arrangements. National credit tenants like drugstores, quick-service restaurants, and auto parts retailers provide stable income streams, while local and regional tenants may offer higher yields with additional credit risk.
Our team evaluates tenant credit quality, lease terms, and property fundamentals to help investors identify NNN retail opportunities that align with their risk tolerance and income objectives. We coordinate lease abstracting, tenant estoppel preparation, and financing due diligence to ensure smooth exchange closings.
How we support this asset class in Philadelphia, PA.
- • Tenant credit scoring and sales performance review
- • Ground lease term benchmarking and valuation support
- • CAM reconciliation verification and property tax forecasting
- • Financing and appraisal alignment with exchange deadlines
Common situations.
- •Selling an actively managed property and seeking passive income with minimal landlord responsibilities
- •Diversifying from single-tenant properties into multi-tenant NNN centers for better risk distribution
- •Exchanging from office or industrial properties into retail for better location visibility and tenant credit profiles
- •Consolidating multiple smaller properties into larger NNN retail assets with stronger tenant covenants
Key considerations.
- •Tenant credit quality and financial strength, especially for single-tenant properties where tenant default risk is concentrated
- •Lease term remaining and renewal probability, as shorter terms may require re-leasing during the exchange period
- •Ground lease terms and expiration dates, which can significantly impact property value and financing options
- •Co-tenancy clauses in multi-tenant centers that may trigger rent reductions if anchor tenants leave
- •Location fundamentals including traffic patterns, demographics, and competitive retail environment
Market insights.
Philadelphia's NNN retail market benefits from strong population density and diverse economic base. Suburban markets along major corridors like Route 1, Route 202, and the Pennsylvania Turnpike offer strong visibility and access, while urban locations provide high foot traffic but may face more competition and higher operating costs.