What if you could own commercial real estate, collect rental income, and have a tenant responsible for nearly every property expense? That’s the appeal of absolute net lease investing. For investors accustomed to managing apartment buildings, handling maintenance, and dealing with unexpected repairs, this strategy offers a different approach to real estate ownership. But how does it work, and what risks should investors understand before buying?

In this episode, Aviva Sonenreich and Alex Rodriguez, Founder and President of The Alexander Group, a Los Angeles-based commercial real estate firm specializing in retail properties, discuss how absolute net lease investing works, why investors are buying single-tenant commercial properties across the country, and how these investments can generate passive rental income with fewer day-to-day management responsibilities.

Alex explains how his family transitioned from owning and managing multifamily properties in Los Angeles to investing in absolute triple net lease properties in other states. He shares how they evaluated cap rates, tenant credit, lease terms, and potential risks before purchasing their first out-of-state retail property.

Aviva and Alex also explore why investors are increasingly considering alternatives to traditional rental properties, how corporate tenants such as Dollar General, fast-food chains, and banks fit into net lease investment strategies, and why owning property thousands of miles away doesn’t necessarily mean sacrificing control.

Through real-world examples, they examine how investors can evaluate absolute net lease opportunities, compare potential income across markets, and structure property oversight to support long-term ownership.

Key Topics Discussed

• What absolute net lease investing is and how it works
• The differences between absolute net leases, triple net leases, and traditional rental properties
• How absolute net lease properties can generate passive rental income
• Why multifamily investors consider transitioning into single-tenant commercial properties
• How to invest in out-of-state commercial real estate
• Why owning property close to home doesn’t always mean having better oversight
• Using annual property inspections to manage out-of-state investments
• How to evaluate unfamiliar cities, neighborhoods, and retail trade areas
• Why tenant credit and corporate lease guarantees matter
• Evaluating Dollar General, quick-service restaurants, and banks as net lease tenants
• How retail store closures and lease expirations can affect property owners
• Understanding capitalization rates and their relationship to investment risk
• Why higher cap rates require closer examination of tenant and lease fundamentals
• How remaining lease terms and renewal options affect investment decisions
• Comparing income potential between multifamily and absolute net lease properties
• How generational real estate owners approach portfolio transitions
• The role of predictable lease payments and reduced landlord responsibilities in long-term investment planning

About the Guest

Alex Rodriguez is the Founder, President, and Managing Broker of The Alexander Group, a Los Angeles-based commercial real estate firm specializing in retail properties and single-tenant net lease investments. He advises tenants, landlords, and investors on commercial sales and leasing, site selection, investment acquisitions, and portfolio repositioning. His expertise also includes market research, property dispositions, valuation, and contract negotiations. Through The Alexander Group, Alex helps clients identify opportunities, make informed real estate decisions, and align their property strategies with their long-term business and investment goals.

About the Host

Aviva Sonenreich is the Managing Broker and Owner of the Warehouse Hotline, a Denver commercial real estate brokerage specializing exclusively in industrial properties. She leads the firm’s brokerage operations, negotiates industrial sales and leasing transactions, advises clients on acquisition and disposition strategies, and oversees the company’s marketing and business development efforts. Through Commercial Real Estate Secrets, she interviews leading investors, brokers, developers, and industry experts to provide actionable insights on commercial real estate investing, brokerage, leasing, development, and market trends.

Looking to Invest in Industrial Real Estate in Denver?

Absolute net lease investing highlights an important consideration for commercial property owners: the structure of a lease can significantly influence rental income, operating expenses, and ongoing management responsibilities.

These considerations also matter when evaluating industrial real estate investments. Tenant credit, lease terms, property condition, and landlord responsibilities can all affect the long-term performance of a warehouse or industrial property.

The Warehouse Hotline specializes in industrial real estate throughout the Denver metro area, helping investors, property owners, buyers, and landlords evaluate opportunities, acquire industrial properties, sell existing assets, and negotiate leases.

Whether you’re considering purchasing an income-producing warehouse, transitioning from another commercial real estate asset class, or evaluating your existing industrial portfolio, our team can help you understand local market conditions and make informed investment decisions.