The Danger in Net Lease Investments

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There is a prevalent notion that an investor can just buy a net lease property and enjoy the rent checks rolling in each month. But Noah Shaffer, senior director of asset management for Confidant Asset Management, says that isn’t always the case.

“Landlords are starting to get calls from Walgreens and others, saying, ‘Hey, Amazon is really killing us,” Shaffer says. “’We’re going to need a 25% rent reduction.’ And those landlords, who thought this was a passive investment for 15 years, aren’t prepared to make a decision on something presented by the corporate tenant. So, as a result, they make poor decisions about their investment asset.”