Thinking of getting started in real estate commercial investment properties? Use this handy guide to help you decide which commercial income property suits you best. HINT: It doesn't depend on how much money you have to spend.

1. The 3 Main TypesThe 3 Main TypesThe 3 Main TypesThe 3 Main Types
Of Real EstateOf Real EstateOf Real EstateOf Real Estate
Commercial IncomeCommercial IncomeCommercial IncomeCommercial Income
PropertiesPropertiesPropertiesProperties

2. 1 Value Added Investments
The 3 Main Types of Commercial Real Estate Investment Properties
These investments are great for investors who
enjoy prospecting commercial real estate
property that needs improvements and tenant
repositioning to yield the maximum return.
Here are five ways in which owners of value
added investments reap profitable returns.
• Fix up a partially vacant or fully vacant
property and re-lease the property at a higher
rate.
• Reposition triple net lease tenants in a
shopping center to allow additional tenants to
occupy space in the center for higher rent than
current tenants pay. (con'td on next slide)

3. 1 Value Added Investments-cont'd.
The 3 Main Types of Commercial Real Estate Investment Properties
• Give the parking lot and/or facade of a retail triple net
shopping center a facelift and subsequently increase rent
rates.
• Buy out triple net leases that are set at low rent rates
and replace old tenants with new tenants that pay higher
rent.
• To help increase sales, add new signage and/or cut
down trees to give consumers a better view of the retail
area.

4. 2 Single Tenant Triple Net Investments
When Is a Good Time to Sell a Triple Net Lease Property?
These investments typically involve property that an
investment grade tenant occupies for a long period of time.
Consequently, they are an excellent opportunity for
investors who need a secure stream of income.
Here's why:
• The triple net lease transfers taxes, insurance, and
maintenance to the tenant, leaving the property owner with
no traditional landlord responsibilities.
• With no landlord responsibilities, the property owner can
move to a different area without becoming disadvantaged
as the owner.

5. 2 Single Tenant Triple Net Investments -cont'd
When Is a Good Time to Sell a Triple Net Lease Property?
• 10 to 25 year lease structures are common and allow the property
owner to plan personal finances and other investments well ahead of
time.
• Percentage annual rent increases are a common stipulation of the
lease and help the property owner maintain profits despite inflation.
• The property is typically positioned in a prime location, which makes
it easy for the owner to find a new tenant if the current one doesn’t
renew the lease.

6. 2 Multi Tenant Strip Centers
When Is a Good Time to Sell a Triple Net Lease Property?
These real estate commercial income properties can be major income
producers for investors who have the tenacity and investment capital
to take them on.
Below are five aspects of owning a multi tenant strip center that can
make it a valuable addition to your commercial real estate property
portfolio.
• A center that has diverse retail tenants draws in a variety of
demographics that synergize to increase the financial well being of all
tenants.
• When one tenant is not doing so well, the success of other tenants
helps pick up the slack and cushions the effect of the tenant’s lagging
sales.

7. 2 Multi Tenant Strip Centers -cont'd.
When Is a Good Time to Sell a Triple Net Lease Property?
• With several tenants supporting the retail center and
your net income, there is less chance of becoming
financially burdened with ownership.
• Normal rent increases are typically built into the
lease for triple net tenants in a strip center and help
the investor profit despite inflation.
• The landlord commonly maintains the roof and
structure, but triple net leases transfer taxes,
insurance, and common area maintenance to
tenants.

8. Questions?
HOW TO DECIDE WHETHER OR NOT A COMMERCIAL PROPERTY IS PROFITABLE
Still not sure what type of real estate commerc ial
properties are best for you?
Contact an experienced real estate broker at Westwood
NetLease Advisors. You'll get a free 3o minute
consultation, and solid advice on how to get started
investing in your income property.
Call us to schedule your free consultation at 314-757-
1031, or send an email to: jgitt@westwoodnetlease.com