How NNN Leases Create Passive Income in Commercial Real Estate

In this episode, Lucas and Luna break down the mechanics of triple-net (NNN) leases—a structure where tenants pay property taxes, insurance, and maintenance on top of rent. They explore why this model has become a favorite among passive real estate investors, using the example of a Dollar General store leased for 15 years with 1.5 percent annual rent escalations. The hosts discuss the trade-offs: lower base rent versus predictable expense-free income, tenant credit risk, and the impact of rising insurance costs on NNN valuations in mid-2026. They also touch on how institutional capital is pouring into net-lease REITs like Realty Income and Agree Realty, and what individual investors should watch for when evaluating a NNN property. By the end, you'll understand the specific numbers behind a typical NNN deal and why the model is gaining traction among retirees and 1031-exchange buyers. #NNNLeases #TripleNetLease #CommercialRealEstate #PassiveIncome #RealtyIncome #AgreeRealty #DollarGeneral #NetLeaseInvesting #1031Exchange #RealEstateInvesting #CRE #RetireeInvesting #PropertyTaxes #InsuranceCosts #Business #FexingoBusiness #BusinessPodcast #RealEstatePodcast Keep every episode free: buymeacoffee.com/fexingo