Episode Overview

Denver landlords are being forced to sell their buildings because they can’t afford the property tax bills, exposing the hidden risks that make triple net investment analysis more complex than most investors realize. Many investors view triple net leases as “mailbox money.” However, the reality is far more complex in today’s Denver market. Meanwhile, tax increases of 100% are forcing landlords to reassess their entire approach to triple net investment opportunities.

Kayla Mahoney runs the commercial division at Engel & Volkers Denver. Additionally, she has guided dozens of investors through triple net acquisitions. Furthermore, she’s witnessed firsthand how single-tenant properties can go from 100% occupied to completely vacant overnight. As a result, this leaves landlords scrambling to service debt while searching for replacement tenants. Moreover, her expertise in evaluating tenant creditworthiness has helped investors avoid common pitfalls. Subsequently, she structures risk-mitigated deals that protect triple net investment returns.

This episode reveals why multi-tenant strip centers are outperforming single-tenant properties. Plus, you’ll learn how to evaluate corporate tenant stability beyond surface-level brand recognition. Next, Kayla covers the specific Denver submarkets delivering 5-7% cap rates for savvy investors. Then, she breaks down the value-add strategies working for triple net investment. Finally, this includes below-market rent repositioning and maintaining substantial capital reserves for vacancy periods.

In This Episode We Cover:

Why property taxes doubling on Santa Fe corridor properties caught landlords off guard
How to evaluate tenant creditworthiness using Moody’s ratings and financial analysis
Multi-tenant diversification strategies that reduce single-tenant vacancy risk
Denver submarkets delivering compressed 5-7% cap rates vs 7-9% in emerging areas
Why industrial triple net properties offer superior stability compared to retail
Environmental liability concerns and who pays for ground contamination issues
Restaurant property advantages including second-gen buildouts and drive-thru premiums
And So Much More!

Whether you’re a multifamily investor considering a 1031 exchange or exploring your first commercial acquisition, this episode provides the Denver-specific insights needed to evaluate triple net opportunities with confidence. Kayla’s practical approach to risk mitigation and tenant evaluation could save you from costly mistakes while identifying the deals that actually deliver passive income.

https://youtu.be/b1m4lywk5W0

Timestamps

00:00 – Introduction
00:55 – Triple Net Basics – What Tenants Pay vs What Landlords Think
03:12 – Evaluating Tenant Creditworthiness – Moody’s Ratings & Business Performance
07:26 – Multi-Tenant Strategy – Diversification Through Strip Centers
08:28 – Denver Hotspots and Trends – 9th & Colorado + RiNo Success Stories
10:20 Value-Add Opportunities – Below Market Rent Strategies
11:42 – Property Tax Shock – 2x Increases Crushing Denver Landlords
13:23 – Risks + Risk Mitigation with High Property Taxes
14:45 – O’Reilly Auto Parts Analysis – Amazon Threat to Retail Tenants
16:45 – Environmental Liability – Who Pays for Ground Contamination
18:04 – Restaurant Properties – Second Gen Advantages & Drive-Thru Value
20:43 – Lease Structure Strategy – 5-Year Options vs 20-Year Commitments
23:30 – How to Calculate a Triple Net Lease
24:23 – Industrial vs Retail – Which Offers Better Stability
26:50 – Value-Add Opportunities – Below Market Rent Strategies

Connect with our guest:

Email: kayla.mahoney@engelvoelkers.com
LinkedIn: https://www.linkedin.com/in/kaylamahoneycre

#575: Are Triple Net Leases Really Passive Income Or High-Risk Investments