In early 2020, Mark and Sarah—two seasoned real estate investors—found themselves at a crossroads. Mark, a traditional real estate investor, poured his money into multifamily properties in major metro areas, lured by high rental yields. Sarah, on the other hand, took a different route, focusing on triple net lease (NNN) investments in growing secondary markets with triple net properties for sale.
Fast forward to 2025, and their portfolios tell very different stories. Mark has struggled with rising maintenance costs, rent collection issues, and tenant turnover. Meanwhile, Sarah has enjoyed stable, passive income from long-term corporate tenants, benefiting from low-maintenance NNN properties for sale in high-growth regions. As we move into 2025, the trend is clear: NNN investments are surging in demand, and specific geographical hotspots are emerging as prime locations for investors seeking security, stability, and solid returns.
Understanding the NNN Investment Landscape
Triple net lease (NNN) properties are among the most reliable, low-risk real estate investments. In an NNN lease, tenants—usually established corporate entities—cover property taxes, insurance, and maintenance costs. This arrangement provides investors with predictable, long-term passive income with minimal management responsibilities.
According to a 2024 report by CBRE, NNN investments accounted for $67 billion in transactions last year, with demand projected to grow by 7.5% in 2025 as institutional and private investors seek stable returns in uncertain economic conditions (CBRE, 2024).
Top Geographical Hotspots for NNN Investments in 2025
Based on population growth, job market trends, economic resilience, and investor interest, the following locations are projected to be the best hotspots for NNN investments in 2025.
1. Texas: The Powerhouse of NNN Growth
Texas continues to dominate the real estate investment landscape, and NNN properties are no exception. With no state income tax, business-friendly policies, and strong job growth, cities like Austin, Dallas, and Houston are prime locations for NNN investments.
- Austin: Home to tech giants like Tesla, Apple, and Oracle, Austin has seen a 23% population growth over the last decade (U.S. Census Bureau, 2024). Retail and industrial NNN properties are in high demand, fueled by economic expansion.
- Dallas-Fort Worth: The #1 metro area for job growth in 2024 (Bureau of Labor Statistics, 2024), Dallas continues to attract corporate offices and distribution centers, making it a hotspot for NNN properties in logistics and retail sectors.
- Houston: With a strong energy sector and a growing healthcare industry, Houston offers stable demand for medical office buildings, convenience stores, and QSR (quick-service restaurant) NNN leases.
2. Florida: The Sunshine State’s Rising NNN Market
Florida’s population boom and tourism-driven economy make it a lucrative market for NNN investments. The state’s population grew by 1.6% in 2024, outpacing the national average (U.S. Census Bureau, 2024).
- Orlando: Home to Disney, Universal Studios, and a booming hospitality industry, Orlando offers strong demand for fast-food chains, pharmacies, and convenience store NNN properties.
- Tampa: With a rapidly expanding healthcare sector, Tampa is an ideal location for medical office NNN leases, as demand for healthcare services continues to rise.
- Miami: International businesses, tourism, and a growing financial sector make Miami attractive for NNN retail spaces leased to luxury brands and major restaurant chains.
3. Arizona: The Next Frontier for NNN Investors
Arizona, particularly Phoenix, is emerging as a top NNN investment destination, thanks to its affordable real estate prices and rapid population growth.
- Phoenix: The city’s 14% job growth over the past five years (Bureau of Labor Statistics, 2024) has fueled demand for NNN leases, particularly in automotive retail, fast-food chains, and big-box retail spaces.
- Tucson: A growing retiree population is driving demand for medical NNN properties, including urgent care centers and dental offices.
4. North Carolina: The Southeast’s Best-Kept Secret
North Carolina is becoming a hub for corporate expansions and tech industry growth, particularly in Raleigh and Charlotte.
- Raleigh: The Research Triangle—home to tech companies and pharmaceutical firms—has led to increased demand for lab spaces and medical office NNN investments.
- Charlotte: A major banking and financial hub, Charlotte offers strong NNN opportunities in urban retail, quick-service restaurants, and corporate-backed office spaces.
5. Tennessee: A New Hotspot for NNN Retail
With a low cost of living and strong job market, Tennessee is attracting businesses and residents alike, making it a prime location for NNN investments.
- Nashville: The city’s booming hospitality and entertainment industry drives demand for restaurant and retail NNN properties.
- Memphis: A key logistics hub, Memphis is ideal for industrial NNN properties, including warehouse and distribution centers.
Key Trends Shaping NNN Investments in 2025
1. Shift Toward Essential Businesses
Investors are increasingly targeting NNN properties leased to essential businesses, such as grocery stores, pharmacies (CVS, Walgreens), and healthcare clinics. This shift ensures stable rental income, even during economic downturns.
2. Rise of Industrial and E-Commerce-Focused NNN Properties
The surge in e-commerce has driven record-high demand for industrial NNN properties. Warehouses, distribution centers, and last-mile delivery hubs are prime targets for investors in major logistics corridors like Texas, Tennessee, and Florida.
3. Increased Interest in Medical NNN Leases
With an aging U.S. population and rising healthcare needs, medical office buildings and urgent care centers are becoming some of the most sought-after NNN properties in 2025. Markets like Phoenix, Tampa, and Raleigh are seeing significant growth in this sector.
4. Higher Demand for Single-Tenant Retail Spaces
As retailers move away from large shopping malls, standalone retail properties with NNN leases (Starbucks, Chick-fil-A, Dollar General) are seeing increased investor interest, particularly in high-traffic suburban areas.
Final Thoughts: Where Should You Invest?
For investors looking for steady, low-maintenance passive income, NNN properties remain one of the best options in 2025. The key is to target high-growth regions with strong economic fundamentals and corporate-backed tenants.
If you’re looking for industrial and logistics NNN properties, Dallas, Memphis, and Phoenix are excellent choices. If retail and restaurant NNN leases interest you, Florida and Tennessee offer promising opportunities. And if you’re exploring the fast-growing medical NNN sector, consider Tampa, Raleigh, and Houston.Just like Sarah in our opening story, investors who strategically position themselves in the right geographical hotspots will enjoy consistent, reliable income for years to come.
