Pari Passu

Pari Passu is a Latin term that means \ equal footing\ and is used in commercial contexts to describe a situation where two or more parties have equal rights or are treated equally in terms of priority, ranking, or treatment. In the context of commercial agreements or financial transactions, Pari Passu clauses ensure that all parties involved are treated equally and are entitled to the same rights and benefits without any preference or priority given to one party over another. This principle is often used in loan agreements, bond issuances, and other financial instruments to ensure fairness and equality among all parties involved.

Pari Passu is a key concept that affects property valuation, financing decisions, and investment returns in the triple net lease market. Understanding Pari Passu helps investors make informed acquisition and management decisions.

Pari Passu directly influences how commercial properties are valued, financed, and traded. Changes in Pari Passu can impact cap rates, NOI calculations, and overall investment performance for net lease properties.

The daily intelligence platform for retail net lease investors. Data-driven insights for smarter NNN investing.