The Best Ever CRE Show JF 4039: Triple Net Leases, Industrial Sale-Leasebacks and Sponsor Diligence ft. Judd Dunning
Sep 25, 2025
Judd Dunning, President of DWG Capital Partners, shares insights on triple-net lease structures and their investor appeal. He explores why companies opt for sale-leasebacks, emphasizing capital recycling and risk management around tenant credit and location. Judd compares NNN with other asset classes and highlights how onshoring boosts industrial demand. He advises on common pitfalls for LPs in sponsor vetting and the importance of thorough due diligence. Finally, Judd discusses how interest rates could affect industrial cap rates in the next few years.
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Absolute Triple-Net Means Minimal Landlord Work
- Absolute triple-net leases transfer nearly all property expenses to the tenant including taxes, insurance, roof, and structure.
- This structure gives investors a clean, predictable income stream with minimal landlord responsibilities.
Use Sale-Leasebacks To Unlock Business Capital
- Sell-leasebacks free operating capital for businesses so they can reinvest in growth instead of owning property.
- Underwrite the business, not the property, because you finance the company’s growth when buying the real estate.
Cap Rate Is Your Basic Risk/Return Dial
- Cap rate equals net operating income divided by property value and measures investor return relative to purchase price.
- Higher cap rates imply more upside but often reflect greater tenant or market risk.