- Good Counterparty – You lock in someone who has the ability to pay good rent for a long time
- Reduces the risk to consistently source for tenants
- Longer term lease (5 to 10 years) tend to have build in CPI or inflation escalation
- If its a large component of your portfolio, this tenant drives earnings
Many investors favor investing in real estate investment trusts (REIT) with strategic properties that tie in tenants on long leases.
There is certainly an appeal: