As an owner of a large number of properties throughout the United States it is important to National Retail Properties to be a good corporate citizen and a good steward of the environment.  NNN demonstrates its commitment to good stewardship of the environment in a variety of ways both at our headquarters in Orlando, Florida and at our properties across the country.

NNN Headquarters

EPA LogoNNN’s headquarters building is EPA’s Energy Star certified. Buildings that have earned EPA’s Energy Star use 35% less energy and generate 35% fewer greenhouse gas emissions. In order to receive this designation, the following components have been met:

Furthermore, NNN encourages a culture of environmental preservation and efficient usage of environmental resources throughout the company by supporting the following initiatives:

NNN Portfolio of Properties

The properties in NNN’s portfolio are generally leased to our tenants under long-term triple net leases which gives our tenants exclusive control over and the ability to institute energy conservation and environmental management programs at our properties.  NNN’s tenants are overwhelmingly large companies with sophisticated conservation and sustainability programs.  These programs limit the use of resources and limit the impact of the use of our properties on the environment, including, but not limited to, implementing green building and lighting standards, and recycling programs.

Generally our leases also require the tenants to fully comply with all environmental laws, rules and regulations, including any remediation requirements.  Our risk management department actively monitors any environmental conditions on our properties to make sure that the tenants are meeting their obligations to remediate or remedy any open environmental matters. On all properties that NNN acquires we obtain an environmental assessment from a licensed environmental consultant to understand any environmental risks and liabilities associated with a property and to ensure that the tenant will address any environmental issues on our properties.

When a new lease is entered with a tenant we actively engage with our tenants to promote good environmental practices on our properties, including discussions regarding the following:

Climate Preparedness

NNN regularly monitors the status of impending natural disasters and the impact of such disasters on our properties.  In most leases NNN’s tenants are required to carry full replacement cost coverage on all improvements located on our properties.  For those properties located in a nationally designated flood zone, NNN typically requires its tenants to carry flood insurance pursuant to the federal flood insurance program.  For those properties located in an area of high earthquake risk, NNN typically requires its tenants to carry earthquake insurance above what is typically covered in an extended coverage policy.  In addition, NNN also carries a contingent extended coverage policy on all of its properties which also provides coverage for certain casualty events, including fire and windstorm.