Under a triple-net lease, the tenant, not the landlord, pays for property taxes, building insurance, and ongoing maintenance. The landlord collects rent and bears almost none of the operating variability associated with owning a building. When Blue Owl Capital agreed to pay $2.4 billion for Sila Realty Trust on April 20, 2026, it was primarily buying 137 of these arrangements.
Most commercial real estate generates income that fluctuates with building-level costs: property tax reassessments, insurance premium increases, unexpected maintenance, capital expenditures. Triple-net leases shift all of that to the tenant. What remains for the landlord is a cleaner, more predictable revenue stream.
What Triple-Net Means for Cash Flow
The income stream from a triple-net lease is predictable by design. With the tenant responsible for operating costs, the landlord’s revenue is largely decoupled from building-level expense fluctuations. Sila’s properties carried an average remaining lease term of 10 years, which means the cash flow visibility extends a decade into the future on current leases.
That duration matters for institutional capital. Pension funds, insurance companies, and permanent capital vehicles (the types of investors Blue Owl Capital serves) manage liabilities stretching 10, 20, or 30 years into the future. Assets producing contractual income over a matching time horizon fit naturally into those portfolios. A triple-net healthcare lease with a decade of remaining term is closer to a bond than to a typical real estate equity investment.
Why Healthcare Net Lease Attracts Institutional Capital
Healthcare properties tied to outpatient care, surgical centers, and post-acute settings serve essential functions that are difficult to relocate or digitize. A surgical center in suburban Dallas can’t move its operations to a cheaper zip code without losing its patient base, its physician relationships, and its regulatory approvals. That friction keeps tenants in place and keeps lease renewal rates high.
Sila’s 98.7% occupancy rate reflects that demand dynamic. Marc Zahr, Blue Owl Capital’s co-president and head of real assets, described the assets as “resilient and essential.”
At $2.4 billion, Blue Owl is converting that view into a capital commitment. Triple-net leases trade some upside potential for income predictability. For institutional capital seeking durable cash flows with long time horizons, that trade-off is precisely the point.
