Sector Deep Dive – Institutional-Grade Credit NNN
What is Institutional-Grade Credit NNN?
Credit-tenant leases with a focus on manufacturing tenants that benefit from U.S. reshoring.
Sector Deep Dive
$1T+
in announced U.S. manufacturing investment is reshaping the industrial landscape1
$235B
in U.S. manufacturing construction spending in 2024, the highest annual total on record2
Institutional-grade tenants
Manufacturing reshoring is driven by institutional-grade companies locked into multi-decade leases.
Long-term contractual income
20-year NNN leases with CPI-linked escalators that generate NOI growth that keeps pace with inflation through rate environments.
Structurally-embedded 100% margins
NNN tenants pay taxes, insurance and maintenance, which reduces landlord exposure to operating cost inflation.
Inside the Deal
$13M
Investment in Jacksonville, FL
3.2%
NOI Escalations3
Cold Storage NNN Deal
Mission critical asset: brand new cold storage facility located in Jacksonville, FL
Contractual income profile with potential changes in property value: 20-year NNN lease with fixed rent escalators paired with limited landlord obligations
Credit-quality tenant: tenant is a key, 35-year distribution partner to McDonald’s with exclusive territorial rights
Acquisition date March 16, 2026.
Logo represents the primary customer of the tenant and does not represent an endorsement of the Fund.
1 Source: J.P. Morgan Asset Management, The Industrial Power Play, April 2026.
2 Source: U.S. Census Bureau, Value of Construction Put in Place Survey, February 2025.
3 Represents average contractual rent escalations.
Institutional-Grade Credit NNN: Triple-net leased properties with investment-grade tenants under long-term leases where the tenant bears all property taxes, insurance, and maintenance obligations.
NNN (Triple-Net) Lease: A lease structure in which the tenant is responsible for property taxes, insurance, and maintenance costs in addition to base rent.
NOI (Net Operating Income): A property’s gross revenue less operating expenses, excluding debt service. NOI growth refers to the increase in this metric over time.