PRO Perspective: The Perfect Net Lease

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Our October 21st episode features Armond Aivazyan, Senior Associate at Marcus & Millichap, discussing the basics of a perfect net lease deal.

Crexi’s PRO Perspective series explores various aspects of the commercial real estate industry in conversation with some of its top CRE professionals. In each episode, we feature different guests to tap into their wealth of CRE expertise and explore the latest trends and updates from the world of commercial real estate. 

In this episode, Crexi’s Yannis Papadakis sits with Armond to discuss the fundamentals of single, double, and triple net lease deals and what trends are happening in the market. Some key takeaways include:

  • Studying companies and their financial track records serves as a great informational resource for keeping tabs on the pulse of net leases deals in commercial real estate.
  • Single, double, and triple net leases vary in how much responsibility for building maintenance, taxes, and so on is shared between the landlord and the tenant. 
  • In some instances, double net leases can have higher cap rates than triple net leases. This is due to landlords taking on extra responsibility to be compensated for their additional involvement. Conversely, most newer buildings end up being triple net leases because tenants are less worried about being responsible for repairs.
  • No two net leases are the same: it’s crucial to have an attorney with you reading the language of a lease to catch any potential pitfalls.

Check out the episode here:

About Armond Aivazyan:

Armond Aivazyan works at Marcus & Millichap’s original Palo Alto office, assisting his clients in acquiring, disposing, and refinancing single-tenant net leased properties. Armond has worked with his clients to manage the successful acquisition and disposition of over $150 million in transaction volume. 

Armond has successfully overseen numerous 1031 exchanges with clients seeking passive income, management-free, from national tenants with reliable credit. Armond has worked on restaurants, drugstore, bank, auto, government, discount, convenience, and home improvement assets. Notable tenants deals include Panera Bread, Raising Cane’s, Taco Bell, Wendy’s, SunTrust, Walgreens, AutoZone, US Bank, Dollar General, Dollar Tree, USPS, and The Home Depot. 

Armond earned his Bachelor’s Degree from the University of California, Riverside. He is a member of the International Council of Shopping Centers (ICSC) and is a licensed California Real Estate Agent.

About Crexi:

Crexi is a commercial real estate (CRE) property marketing and deal management platform that combines an active marketplace for sale and lease properties with powerful property marketing, deal management, and market intelligence tools designed to help brokers, buyers, and tenants eliminate time-consuming processes and close deals faster.

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Shanti Ryle
Shanti Ryle

Content Marketing Manager

Shanti leads Crexi's content marketing strategies with 7+ years of content development experience, creating everything from blog posts to award-winning podcasts. Previously, she worked on content teams at Snapchat, Weedmaps, and HopSkipDrive as well as developed copy, articles, and media for freelance publications.

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