20/05/2026
๐๐๐ฉ ๐๐๐ญ๐ ๐๐๐ฅ๐ฅ๐ฌ ๐๐จ๐ฎ ๐๐จ๐๐๐ฒ. ๐๐๐ง๐ญ ๐๐๐ซ ๐
๐จ๐จ๐ญ ๐๐๐ฅ๐ฅ๐ฌ ๐๐จ๐ฎ ๐ญ๐ก๐ ๐๐ซ๐ฎ๐ญ๐ก.
A 7.15% cap rate. 15-year lease. Corporate tenant. On paper, it looks perfect.
Here's how you still lose money on that deal.
Pull the rent per square foot. A Goddard School paying $42,000 a month works out to $40 a square foot. Most NNN tenants pay $12-18. Some strong retail corridors get to $25.
$40 is not normal. $40 is a specialty number.
So before you close, ask yourself one question: if this tenant walks on day one of year 16, who else is paying $40 a square foot for a building with a fenced playground out back?
A doctor or dentist might. But they're not setting up inside a former preschool.
Nobody else is paying that rent. Which means you don't own a $5M NNN asset. You own a 15-year lease attached to a building that has one viable tenant type on the planet.
Cap rate tells you what the deal earns today. Rent per square foot tells you what happens when the lease ends.
Experienced NNN investors underwrite the vacancy, not just the tenancy.
Pull rent per square foot before you fall in love with the cap rate.
If you're new to NNN and want the full screen I run on every deal before I call a broker...
๐ ๐พ๐๐๐๐๐๐ โ๐๐๐โ ๐ฝ๐๐๐๐ ๐๐๐ ๐๐๐ ๐๐๐๐ ๐ฟ๐๐ผ๐ ๐๐พ๐๐๐๐๐๐๐ ๐๐๐ผ๐๐๐๐ ๐๐๐.