Single-tenant net lease (STNL) retail assets continue to attract investors seeking commercial real estate exposure with minimal management obligations, according to Marcus & Millichap. Under triple-net lease structures, tenants typically cover taxes, insurance and most maintenance costs, while owners remain responsible for structural items such as the roof. Demand for STNL formats — including car washes, convenience stores, quick-service restaurants and auto service centers — rose sharply following the introduction of 100 percent bonus depreciation, as these property types contain substantial equipment and site improvements that qualify for the benefit. Although bonus depreciation stepped down to 60 percent in 2024, tax legislation passed earlier this year restored and permanently set the allowance at 100 percent. Investors are also increasingly pairing the renewed incentive with tax-deferred strategies such as 1031 exchanges.
STNL transaction activity has increased d
