Question 1

What is a net lease property?

Accepted Answer

A net lease property is a commercial real estate asset where the tenant pays base rent plus some or all of the property expenses — taxes, insurance, and maintenance. NNN (triple-net) leases place all three expenses on the tenant, making them a low-management, predictable-income investment favored by private capital and institutions.

Question 2

What is a sale-leaseback transaction?

Accepted Answer

A sale-leaseback is a transaction in which a property owner sells their real estate to an investor and simultaneously signs a long-term lease to remain as the tenant. This allows the seller to unlock the capital tied up in real estate while retaining full operational control of the location. Sale-leasebacks are commonly used by corporations, restaurant chains, retailers, and healthcare operators.

Question 3

What is a 1031 exchange in commercial real estate?

Accepted Answer

A 1031 exchange, named for IRS Section 1031, allows investors to defer capital gains taxes when selling an investment property by reinvesting the proceeds into a like-kind replacement property within specific time limits: 45 days to identify the replacement and 180 days to close. Net lease properties are among the most common 1031 exchange targets due to their passive income and low management requirements.

Question 4

What is a cap rate and how is it used in net lease investing?

Accepted Answer

Cap rate (capitalization rate) is the ratio of a property's net operating income to its purchase price. In net lease investing, cap rates are the primary valuation metric. Lower cap rates reflect lower perceived risk — driven by tenant credit quality, lease term, location, and brand. NNN cap rates typically range from 4% to 7% depending on asset type and tenant.

Question 5

What types of clients does Brox Capital serve?

Accepted Answer

Brox Capital serves three primary client groups: private capital and high-net-worth investors seeking net lease acquisitions or dispositions; corporations and owner-operators evaluating sale-leaseback transactions; and institutions and family offices seeking portfolio disposition or advisory on net lease strategy.

Question 6

Why use a boutique net lease advisor instead of a large brokerage?

Accepted Answer

Boutique net lease advisors like Brox Capital offer exclusive focus on a single asset class, meaning every engagement receives senior-level attention rather than being staffed to junior brokers. Without competing practice groups or conflicting interests, a specialized firm can deliver deeper market intelligence, broader qualified buyer pools, and faster execution — particularly critical on time-sensitive 1031 exchange or sale-leaseback mandates.