Downsides of commercial property w/ single corporate tenant?

[Khaled Seirafi]

I've only invested in multifamily and mixed use property. Curious about switching over to commercial with a existing corporate tenants with absolute NNN leases for min of 10 years left on lease. Tired of dealing with all the headaches of multifamily with measly returns.

But, I am concerned if a commercial property's lease is about to expire and the corporate tenant doesn't renew. Obviously, I'd be in a tough spot in that situation. But I'm also concerned about if one were needing to sell before or at expiration. You won't be able to really know what the market will be like at the time. Is there potential for a lot of loss in property value if in a mid-sized city with a healthy economy? 

[Brock Mogensen]

That is the downside of long term NNN leases..vacancies are tougher to fill/project.

The way to mitigate the risk is assume vacancy periods at the end of each lease. Talk with experienced leasing brokers in the area on demand for the space. Make sure the rents are in line with market. Build a strong relationship with the tenant. Get well ahead of any vacancy periods by consistently communicating with the tenant..these are just a few ways to mitigating risk on these deals.