Tenant Financial Health: Default risk from tenants failing to meet lease obligations, leading to vacancies and lost rental income, especially if larger tenants face financial distress or bankruptcy.

Interest Rate Sensitivity: Rising interest rates increase NNN's borrowing costs for financing acquisitions and refinancing existing debt, potentially compressing margins and impacting growth.

Economic Recession Impact: A broad economic downturn or recession can reduce consumer spending, negatively affecting the financial stability of NNN's retail tenants and increasing lease default probabilities.