In the News

Mike Wippler Quoted in Commercial Property Executive Article that Focuses on Triple-Net Leases

Says Investors Look to Higher-Yielding Triple-Net Lease Investments as Surrogate for Fixed-Income Component of Portfolio

March 28, 2014

Michael P. Wippler, Office Managing Member of Dykema’s Los Angeles Office whose practice focuses on business counseling, litigation and the negotiation and documentation of business and real estate transactions, was quoted in an article—“Day in the Sun”—that appears in the April 2014 edition of Commercial Property Exclusive, a print and online news publication aimed at senior-level decision makers in the commercial real estate industry.

In the article, which focuses on the growth of the triple-net lease (and the concurrent decline of the double-net lease), Wippler notes that investor demand is the driving force behind this change. He observes that in the current low-interest-rate environment, investors looking at their portfolios consider the relatively higher-yielding triple-net lease investments to serve as a replacement for fixed-income instruments.

Wippler points out, however, that not everything that purports to be a triple-net lease truly is. When considering any investment in commercial real estate, investors “need to be careful in examining the lease.” Wippler adds that “there are a variety of exceptions to the tenant’s taking full responsibility for the property taxes, insurance and maintenance.”

To read this article in its entirety, click here.