NNN Showdown

Investors are weighing single-tenant NNN properties against mixed-use projects in the Austin and Denver markets. Cap rates for NNN properties range from 5-6%, whereas mixed-use projects offer 6-7%. Lenders like Wells Fargo and Chase are providing favorable financing terms for NNN deals, with 65% LTV and 4.5% interest rates. However, buyers are walking away from deals with high manaagement requirements or uncertain lease renewals. Austin's strong job market and Denver's growing populaiton make both cities attractive, but investors must carefully evaluate each opportunity's potential for long-term returns.