Investors are beginning to gravitate to single-tenant triple net assets as the pandemic wears on. These assets tend to be stabilized investments, a quality that investors want during times of economic uncertainty. As a result, there has been an increase in demand and transaction volume for single-tenant triple-net tenants.

"There has certainly been a shift among investors over the last several months towards asset classes that tend to be more stabilized in times of uncertainty," Tony Festa, director and capital advisor at Tauro Capital Advisors, tells GlobeSt.com. "Single-tenant triple-net leased deals are one of those types of assets. This was proven in the 2008 financial downturn when NNN properties continued to perform, despite economic uncertainty. Many of the underlying businesses such as fast food locations, coffee shops, and gas stations have proven to be successful despite previous economic cycles and continue to do so now."

Single-tenant triple net assets are considered a flight to safety. In today's market, most capital is looking to mitigate risk. "We believe that many investors are currently in a flight to safety where they are looking for assets that provide downside protection or reduce overall risk," says Festa. "As a result, we are seeing an influx of investment and development within the single-tenant triple-net space."

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.