Scopes Realty & Investment

MULTI-TENANT TRIPPLE NET INVESTMENT

STRIP MALL

“Triple Net Lease Properties”, also known as “NNN Properties”, are considered to be one of the safest, and most solid types of investments in the world for commercial real estate investors.

A triple net lease (triple-net or NNN) is a lease agreement on a property whereby the Lessee, in this case, Scopes Realty & Investment, promises to pay all the expenses of the property, including real estate taxes, building insurance, and maintenance. These expenses are in addition to the cost of rent and utilities. In contrast, in standard commercial lease agreements, some or all of these payments are typically the responsibility of the landlord.

NNN Investments typically provide higher rate of returns than bonds and require less work. NNN Properties include properties that are leased for a long term to high credit tenants, such as Scopes Realty & Investment. In this Triple Net lease or NNN lease, Scopes Realty & Investment is responsible for property taxes, property insurance and all maintenance costs associated with the property and thereby reliving the owner of any of this hassle.

SINGLE TENANT TRIPLE NET INVESTMENT

BANK BUILDING

In general, most investors prefer single tenant NNN Properties more than multi-tenant shopping centers.

The tenant that occupies a “free standing, single tenant NNN Property” assumes responsibility of all maintenance expenses such as: roofing, structure, parking lot, landscaping, etc. In addition, the tenant is also responsible for asset maintenance, insurance, and taxes.

Single tenant retail properties are also backed by high credit rating companies which is why most people invest in Triple Net Properties.

NNN properties are ideal options if you are looking for stable investment with steady and predictable returns over time. By doing this, one maximizes cash on cash return, or even has the opportunity to just invest in higher rating, NNN Properties.

MIXED USE BUILDING

Thanks to the high demand for mixed-use properties, it tends to be a less risky investment. It’s also a safer investment because you’re diversifying your investment across multiple types of properties. By not putting all your eggs in one basket, you won’t lose out on as much income if you lose a tenant.

Mixed-use commercial property is either a building or a land development that includes both residential and commercial space. For example, a structure that has stores on the ground floor, office space on the second floor, and apartment units on the top floor would be considered mixed-use commercial residential property.

Mixed-use commercial real estate has also become a central piece of urban development planning. Scopes Realty & Investment combine residential, commercial, cultural, institutional, and even entertainment functions to create a fully blended multi-use setting. Or, entities can be disconnected entirely, yet co-exist on the same parcel of land. Commercial real estate development within the mixed-use sector can take up a single building or span an entire city block or neighbourhood.

Scopes Realty & Investment can create a theme within a multi-use structure, in which all residents and business owners share an everyday lifestyle, economic status, or cultural vision. As an area becomes more populated and industrialized, mixed-use property becomes more valuable and creates a more efficient ecosystem among all inhabitants.

Mixed-Use Properties Are Sustainable Real Estate Models

1. Mixed-Use Real Estate Developments attract high-quality tenants and businesses. Tenants like millennials and seniors:

• Enjoy living in urban centers,
• Seek affordable rentals, which are more manageable,
• Appreciate the proximity of shopping, parks, recreation, and entertainment facilities.

2. Live/Work Tenants Take Care of Their Rentals/Leases
We all know the potential problems associated with irresponsible and reckless tenants. Live/work tenants, however, have a particular interest in the maintenance and care of the mixed-use property. Tenants who live where they work are generally less problematic with rent payments and property maintenance.

3. Landlords Can Expect Longer Tenant Retention

• Tenants can be notorious for breaking leases abruptly — even if it means losing their deposit or not paying the last month’s rent. However, investors who buy mixed-use property, experience longer tenant retention.
• Due to the high demand for mixed-use real estate developments in major municipal markets, tenants often have to go on waiting lists to secure a residential or commercial property. Once they finally get inside a community, they realize quickly that the development often exceeds their expectations.
• Therefore, tenants do not want to leave. Walkability, safety, affordability, amenities, and other features make living in a residential and commercial development of this kind too irresistible to leave.
• Multi-use developments often foster a community mindset in which residents and business owners form a tight-knit neighbourhood. People who are drawn to a tight community will usually stay in that community regardless of other opportunities that might lie elsewhere.

Reasons to Invest with Scopes Realty & Investment in Mixed-Use Properties

1. Renters are attracted to these properties because they offer a closeness to neighbourhoods and living spaces.
2. The different uses can work together. Office workers and store owners can go to the restaurants and retail shops on their breaks and mealtimes. Shoppers can grab a bite to eat or see drink coffee. You’re giving people more of what they want so they stay in your property and invest in your property.
3. Studies show there is a link between walkable areas and economic viability of a town.
4. Mixed-use properties promote a sense of community.
5. Even if retail stores are closing due to the success of online retail stores, there are always businesses that can fill a mixed-use property and attract business such as: hair salons, boutiques, coffee shops, shoe stores, and more.
6. You get a greater return on investment. You can charge more rent on the commercial properties and on the mixed-use development property overall. Commercial leases’ rent is 6 to 12 percent of the property’s purchase prices, while residential leases are 1 to 4 percent of the purchase price.
7. The younger (and large) Millennial generation (who is a big buyer group) like mixed-use developments for their environmental sustainability. Many mixed-use developments repurpose old buildings and avoids overbuilding, which is promoting sustainability. Millennials like this type of property because they can walk to work, stores, favorites shops/eateries.
8. Senior citizens also like mixed-use developments because they want to live in smaller spaces within walking distance to stores and restaurants, so they don’t have to go far. Both senior citizens and Millennials are large markets you can attract and rely on coming to your mixed-use property.
9. Many of your tenants will be commercial tenants, which means they will likely keep your property highly maintained, because they need to attract the public.
10. The hours you need to be available for a commercial tenant are more limiting than residential tenants. Many commercial spaces operate 9 a.m. to 5 p.m. or 10 a.m. to 9 p.m. so you won’t get any middle-of-the-night emergencies or requests, which is easier for a landlord.