how much money does 500 million in triple net lease make
A $500 million triple net lease would typically make about $20 million to $35 million per year , depending on the cap rate and tenant quality. A common rough example is 6% cap rate = $30 million/year in net income.
How the math works
In triple net real estate, the tenant usually pays taxes, insurance, and maintenance, so the owner mainly receives rent as net income.
The quick formula is:
- Annual income = purchase price × cap rate
- $500,000,000 × 4% = $20,000,000/year
- $500,000,000 × 5% = $25,000,000/year
- $500,000,000 × 6% = $30,000,000/year
- $500,000,000 × 7% = $35,000,000/year
What changes the number
The biggest driver is the cap rate , which reflects tenant credit, lease length, location, and market demand. Higher-credit tenants usually mean lower cap rates and lower yield, while riskier tenants can push cap rates higher.
Simple example
If the property is bought at a 6.5% cap rate, the annual net income would be:
- $500 million × 6.5% = $32.5 million per year
Practical note
That is usually gross net income to the owner before financing and taxes , not the final take-home cash after debt service, depreciation, or entity-level taxes.
| Cap rate | Annual net income on $500M |
|---|---|
| 4% | $20 million |
| 5% | $25 million |
| 6% | $30 million |
| 7% | $35 million |