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Daily Real Estate News | September 26, 2003 | No to Management Heavy Properties Commercial real-estate investors are growing more eager to buy up properties that require little to no management. These are mostly single-tenant net-lease properties where the one tenant is responsible for such expenses as taxes, insurance, and upkeep. Not only do these properties require very little hands-on maintenance, they are typically leased to long-term tenants--some for as much as 30 years. Risk, though, is tied into the stability of the one tenant, so thorough research is a must. After all, if the occupying firm goes out of business, the property immediately becomes 100-percent vacant. Analysts report that individuals can invest in net-lease properties by either buying a property outright or forming a partnership with one or more investors and jointly acquiring it. Among the most common net-lease properties are video stores, restaurants, and auto-parts shops.

Source: Wall Street Journal (09/24/03); Smith, Ray A.