Stable Investment: There are ±11 years remaining on the NNN leases with 2% annual increases and one, five-year option to extend the lease.
Scheduled Rental Increases | Hedge Against Inflation: The leases feature 2% annual rental escalators, providing a future owner with a boost in cash flow and a hedge against inflation throughout the life of their investment.
Healthcare Real Estate | Recession Resistant Property: Veterinary hospitals are extremely sought-after investments for their resistance to downturns in the economy and e-commerce trends that affect traditional retail properties.
Tenant Investment in Location: Pet hospitals rarely relocate due to the difficulty of retaining the same patients in a new location and the high costs associated with moving and build-outs.
Very Passive Lease Structure: There are minimal landlord responsibilities throughout the lease term, offering a passive investment for both local and national investors.
Robust Growth Industry: The global veterinary services market size is expected to reach $142 Billion by 2025, with a CAGR of 5.6% during that period.