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Updated about 1 year ago, 11/28/2023

User Stats

117
Posts
26
Votes
Khaled Seirafi
  • Investor
  • Tysons, VA
26
Votes |
117
Posts

Downsides of commercial property w/ single corporate tenant?

Khaled Seirafi
  • Investor
  • Tysons, VA
Posted

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? 

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