A single-tenant net lease property is underwritten three ways: read the lease for what the tenant really pays and can walk away from, assess the tenant's ability to pay, and value the real estate as if the tenant left. Your own credit source or a credit analyst covers the tenant; Titleman covers the property and the lease from the address, lease and OM in live Excel; a spreadsheet is enough for a quick cap rate check.
Updated 19 October 2026. Published by Titleman, which makes one of the tools compared.
Lens 1: the lease
"NNN" on an OM is a label, not a promise (what NNN means). Read the lease itself for:
- Who pays what: taxes, insurance, maintenance, and above all roof, structure and parking. A lease where the landlord keeps the roof and structure is not absolute net.
- Term and options: years remaining, renewal options and their rent.
- Rent bumps: flat rent loses value to inflation; fixed or index steps hold it.
- Exit rights: termination options, go-dark rights, co-tenancy, and assignment or sublease terms that let the original tenant move out of the building.
- Guarantor: the parent company, a subsidiary or a franchisee. The name on the sign may not be the party on the lease.
- Purchase or first-refusal rights.
Lens 2: the tenant
Rent is only as good as the party that pays it. Review the guarantor's financials or rating and how essential this site is to the tenant. Titleman does not rate tenants; use your credit source or analyst for this part.
Lens 3: the real estate without the tenant
For example, illustrative figures for a 10,000 square foot building:
| Step | Figure (dollars) |
|---|---|
| Contract rent, 30 per sq ft NNN | 300,000 a year |
| Price at a 6.0% cap rate | 5,000,000 |
| Market rent for the next user, 20 per sq ft | 200,000 a year |
| Value re-leased, at a 7.5% cap rate | about 2,667,000 |
| Less 12 months downtime, TI at 40 per sq ft, commissions | about 720,000 |
| Value if the tenant leaves | about 1,947,000 |
In this example about 3 million of the 5 million price rests on the tenant staying. That gap, set against the remaining term, is the core of the deal. See what a cap rate is.
Asset-specific checks
- Rent against market: above-market rent is a risk at renewal, not a bonus.
- Location: traffic, access and the surrounding trade area decide who else would lease it.
- Lease end vs loan maturity: the lender's first question.
Which tool fits
| Option | Best for | What it does | Where it stops | Pricing model |
|---|---|---|---|---|
| Spreadsheet | Quick price check | Cap rate, rent bumps, simple dark case | Lease clauses read by hand | Staff time |
| Credit source or analyst | Tenant and guarantor strength | Ratings and financial review | Says nothing about the building | Subscription or per engagement |
| Titleman | The property and the lease on a deal or loan request | Underwrites the property from the address, lease and OM in live Excel, with sensitivity grids | No tenant credit rating; no buy or sell verdict | Per run; terms on a demo |
Where Titleman fits
Titleman's underwriting took about 58 minutes at the median on production runs in the 30 days to 18 October 2026. Every input shows its source and date; what it cannot find is named. For industrial net lease with a credit tenant see single-tenant NNN underwriting, and for the category, AI real estate underwriting software. To run it on a net lease deal, request a demo.
FAQ
What is dark value?
The property's value if the tenant leaves: market rent for a new user at a higher cap rate, less downtime, improvements and commissions.
Is every NNN lease the same?
No. Some leave roof, structure or parking with the landlord, and some cap what the tenant reimburses. Read the lease, not the summary.
Why do lenders care when the lease ends?
If the lease ends before the loan matures, the lender carries the re-leasing risk; many size to dark value or require a reserve.
Does Titleman check the tenant's credit?
No. It underwrites the property and the lease. Tenant and guarantor credit comes from your own credit source or analyst.