Written & reviewed by Stephen A. Sobin, President of Select Commercial Funding LLC
Property Type
NNN & Single-Tenant Lease Financing
Select Commercial arranges financing for single-tenant, triple-net-leased property, also called NNN, net lease or single-tenant lease financing. We finance property leased to investment-grade national credit tenants at up to 75% LTV, with terms that match the remaining lease. Compare today’s commercial mortgage rates.
Get a Free QuoteNet-Lease Loan Rates & Terms
| Loan Type | Rate* | Max LTV |
|---|---|---|
| 5 Year Fixed | 6.37% | 75% |
| 7 Year Fixed | 6.37% | 75% |
| 10 Year Fixed | 6.37% | 75% |
- Single-tenant, triple-net-leased property
- Investment-grade national credit tenants
- Up to 75% LTV for purchases and refinances
- Cash-out available
- Low step-down prepayment penalties
- Loan terms up to the remaining lease term
Rates are indicative and update with the market. Tenant credit and lease term drive final terms.
Compare Your Net-Lease Loan Options
NNN loans are underwritten to the tenant and lease, so the right lender depends on tenant credit and term:
| Program | Typical rate* | Max leverage | Best for |
|---|---|---|---|
| CMBS / conduit | 6.37% | Up to 75% | Non-recourse, credit tenant |
| Bank / portfolio | 6.37% | Up to 75% | Relationship, shorter term |
| Bridge | 9.00% | Up to 70% | Short remaining lease, transition |
Life insurance company financing is often the lowest long-term fixed option for single-tenant property leased to an investment-grade tenant on a long lease.
Single-Tenant Net-Lease Property We Finance
We specialize in commercial mortgages for single-tenant triple-net leased property, sometimes called NNN lease financing, net lease, or single-tenant lease financing. These loans are underwritten heavily to the strength of the tenant and the remaining lease term:
- Single-tenant, triple-net-leased retail, office and industrial
- Investment-grade national credit tenants across the pharmacy, convenience, auto-parts, discount and quick-service sectors
- Up to 75% LTV for purchases and refinances, with cash-out available
- Low step-down prepayment penalties
- Loan terms that typically match the remaining lease term
A property leased to a strong national credit tenant can qualify for attractive, long-term financing, in some cases at very high leverage on tenant credit strength alone. Examples of tenants we regularly finance include Walgreens, CVS, Dollar General, Dollar Tree, Family Dollar, AutoZone, Advance Auto Parts, O’Reilly Auto Parts, Starbucks, Tractor Supply and Sherwin Williams, as well as single-tenant franchise locations such as Dunkin and McDonald’s where the franchisee provides acceptable financials.
Benefits of Single-Tenant Net-Lease Loans
There are many reasons investors favor net-leased property and NNN financing. A single-tenant net-lease property can provide a long-term, predictable income stream with minimal management:
Long-term, stable income
Triple-net leases typically place a single tenant on a long-term lease, often with more than ten years remaining. These long leases give the owner a stable source of rental payments and avoid the turnover risk of short-term local retail leases, where a departing tenant can leave a costly vacancy.
Minimal landlord responsibility
Under a triple-net lease the tenant handles property maintenance and pays taxes and insurance, leaving the owner far more time and capital to invest elsewhere.
Predictable and simple
Net leases are predictable. Both parties know the structure and terms at signing, and rent increases are agreed to upfront, so the owner knows the income stream throughout the lease term.
Easier to finance
Properties with NNN leases are generally easier to finance than local shopping centers. Many lenders actively compete to lend on single-tenant property leased to strong national credit tenants, so investors often secure better rates and terms than on other retail. We are actively offering net-lease financing on these assets today.
Net Lease: 2026 Outlook
The single-tenant net-lease market firmed through early 2026 on limited inventory and steady investor demand, though the rate outlook tempered expectations for broad cap-rate compression.
Cap rates are stable to slightly higher. Overall single-tenant net-lease cap rates sit near 6.8%, with retail around 6.6%, roughly flat to modestly up over recent quarters.
Demand outpaces supply. Net-lease investment volume reached about $52 billion for the year ending in early 2026, up around 8% year over year, while available inventory fell nearly 10% in the first quarter, putting well-positioned buyers in a strong spot.
Credit quality matters more than ever. With the market now expecting fewer rate cuts, investment-grade and long-lease assets should hold or tighten, while non-rated or short-lease properties may see cap rates widen. Financing follows the same logic: the stronger the tenant and the longer the lease, the better the terms.
Why Finance Net Lease With Select Commercial
With more than 30 years of experience and relationships across CMBS, bank, life company and private lenders, we place single-tenant net-lease loans on terms matched to the tenant and lease, and we compare every option for your property. There are no upfront application or processing fees, and we issue written pre-approvals within 48 hours at no cost or obligation.
What Our Clients Say
“Our investment group just bought our first triple-net leased property. None of us had experience with NNN financing before. Thank you, Stephen, for the education. You were very patient with us, and we look forward to working with you again.”
Rita S. · Philadelphia, PA“As a real estate attorney, I trust that Select Commercial will deliver apartment building loans and commercial mortgages in a timely manner. The rates and terms offered are excellent. I heartily recommend them.”
David S. · New York City“I needed an SBA loan and found Select Commercial. It was obvious Stephen knew everything about commercial loans. If you are starting a small business, definitely give them a call.”
Larry S. · Washington, DC“Select Commercial offered 100% financing for my medical practice when my bank would have required 20% down. They delivered something my bank could not, and handled everything professionally.”
John C. · Boston, MAGet Your Net-Lease Loan Quote
No cost, no obligation. Written answers within 48 hours on single-tenant net-lease loans from $1,500,000.
- No application or processing fees
- Written answers within 48 hours
- For 5+ unit and commercial properties, $1.5M and up