There's currently growing single-tenant net-least (STNL) inventory. An analogy to bonds can help someone new to net lease model behavior and strategy to make better decisions.
Chris Lomuto, an associate vice president in Northmarq's San Francisco office, brought up this old suggestion to think about bonds. "Bonds make a pretty good metaphor for single tenant net lease," he told GlobeSt.com. It's not a perfect analogy, but a useful one.
Back to financial basics for a moment. Bonds are fixed-interest financial instruments often associated with fixed-income investing. There are government bonds (Treasurys being the standard for "safe" investments but not the only type of government bond) and corporate. The principle is always the same. The investor buys a bond for a set amount. The seller then owes interest payments and an ultimate payment of the original principal to the investor.
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