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October 17, 2025

Single-Tenant Net Leases (STNL): A Guide for Private Real Estate Investors

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In today’s market, many private real estate investors are seeking stable opportunities that provide predictable income and a passive management structure. One asset class that consistently delivers these benefits is the single-tenant net lease (STNL) property.

At CMK Properties, our focus is clear: to be the premier single-tenant net lease developer for the nation’s leading brands. For investors, understanding how this model works—and why it remains a cornerstone of reliable income generation—is the first step toward building a resilient real estate portfolio.

What Is a Single-Tenant Net Lease?

A single-tenant net lease refers to a commercial property leased to one tenant—often a national or regional brand—under a long-term lease structure. The tenant occupies the entire building and is typically responsible for most or all operating expenses, including:

  • Taxes
  • Insurance
  • Maintenance and repairs

When the tenant assumes all three of these obligations, the lease is known as a Triple Net (NNN) Lease. This structure provides investors with a highly predictable stream of income and minimal day-to-day oversight, since the tenant manages and maintains the property directly.

Benefits of Investing in Single-Tenant Net Leases

Investors are drawn to STNL properties for their balance of security, simplicity, and steady returns. Some of the key advantages include:

  1. Predictable Cash Flow: Because tenants are typically investment-grade companies operating under long-term leases—often 10 to 20 years—investors can count on consistent rental income without worrying about turnover or variable operating costs.
  2. Passive Ownership: With the tenant covering maintenance, taxes, and insurance, investors enjoy a largely “hands-off” ownership experience. STNL assets are ideal for those seeking passive, mailbox-style income that doesn’t require active property management.
  3. Creditworthy Tenants: National brands, such as retailers, medical providers, and early childhood education operators, offer additional confidence for investors. Their strong financials and established business models reduce risk of default.
  4. Tax Advantages: Depreciation, 1031 exchanges, and other tax strategies make single-tenant assets a powerful vehicle for deferring or minimizing taxable gains while building long-term wealth.
  5. Liquidity and Exit Options: Because these properties are in high demand among institutional and private buyers alike, STNL investments often maintain strong resale value and liquidity compared to more operationally intensive real estate.

Why Invest in Single-Tenant Net Leases vs. Other Property Types

While there are many ways to invest in commercial real estate, few offer the same blend of stability, simplicity, and predictability as single-tenant net leases. Other asset types, such as multi-tenant retail centers, multifamily properties, and office buildings, tend to require more active management, carry higher operating costs, and experience more volatile cash flow.

Here’s how single-tenant assets compare:

  • Multi-Tenant Retail: Often attractive for diversification, but landlords must manage multiple leases, coordinate maintenance across shared spaces, and absorb costs when vacancies occur. Cash flow can fluctuate based on tenant turnover and market cycles.
  • Multifamily: Provides frequent rent adjustments but demands hands-on management, capital expenditures, and higher operating costs. Performance can also be tied to local employment trends and rent control dynamics.
  • Office Buildings: Historically seen as stable, but tenant retention has become increasingly uncertain due to remote work trends and evolving space utilization. Lease negotiations are complex, and downtime between tenants can be lengthy and costly.
  • Single-Tenant Net Leases: In contrast, STNL properties offer long-term leases with minimal landlord responsibility, creditworthy tenants, and highly predictable income. This makes them particularly appealing for investors seeking passive, income-focused portfolios with reduced exposure to market volatility.

STNL Examples from the CMK Portfolio

CMK Properties has developed a notable portfolio of single-tenant assets across high-growth markets. Each project reflects our commitment to predictability, partnership, and long-term performance. Two examples include:

  • Tractor Supply Co: CMK has partnered with one of America’s most trusted rural lifestyle retailers to deliver nearly a dozen high-quality build-to-suit locations that support their continued national expansion.
  • The Learning Zone Early Education Centers: As demand for high-quality childcare facilities continues to grow, CMK has delivered multiple single-tenant developments across Nashville and Huntsville for this leading early childhood education provider.

These examples showcase CMK’s ability to execute programmatic, build-to-suit developments that serve essential industries—from retail to education—while creating predictable, passive income for investors.

Partner with CMK Properties

As CMK continues to expand our portfolio of single-tenant net lease developments, our focus remains on creating value and driving growth for our partners. For investors, partnering with an experienced STNL developer means aligning with a team that understands how to deliver predictable outcomes, from site selection to lease execution.

If you’re interested in learning more about investment opportunities or joining our network of partners, contact our team to explore how CMK is building the next generation of single-tenant net lease assets for the nation’s leading brands.

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