With the right tools, banks, REITs and other large firms can find these opportunities faster. To reiterate what I mentioned earlier, the overall value of an asset is largely influenced by its existing tenant base. Understanding what types of tenants and industries are most likely to sign a triple net or percentage lease, then looking for and evaluating buildings with those specific types of occupants can improve the hunt for yield.
Commercial real estate technology backed by tenant data can fuel stronger forecasting on passive income. For institutional investors seeking triple net and percentage lease opportunities specifically, access to this data streamlines their sourcing strategies and arms them with the necessary intel to make informed investment decisions.
These data platforms can empower firms to closely examine an asset’s occupants to deduce whether or not they might be operating under such terms. Even more importantly, they provide the accurate ownership and property manager information, including name, email address and phone number, for outreach to confirm the property’s net operating income (NOI). Such rich tenant intel offers an easier way to unlock passive income opportunities and enables institutional investors to achieve confident decision-making.
No matter the investor, one thing’s for certain—the hunt for yield is tricky and comes with an array of associated risks. As REITs, banks, and other large firms continue their search for profitable properties, it’s vital they arm themselves with invaluable tenant insights to secure better ROI.
Rich Sarkis is CEO of Reonomy, a national commercial real estate data company in New York City.