For these reasons, both of these REITs have investment-grade credit ratings. Realty Income has a BBB+/Baa1 rating from S&P and Moody's, respectively, and Simon has an even more impressive A/A2 rating. Another aspect of retail real estate that helps to reduce risk is the favorable lease structure. Retail properties are generally leased for long periods of time, and on a "net lease" basis, which means that the tenants take care of the variable costs of owning a property such as taxes, maintenance, and insurance. In fact, Realty Income's average lease is signed with a 17.5 year term, with annual rent increases built in.