My partner and I have been unable to locate some how to type manuals, books, etc on finding possible businesses for the 2 strip malls we are planning any advice would be welcome as we are both new to the whole situation.
You’re planning on building a retail strip center?
Couple of options…
- Get some representation
- Attend local CID meetings and pitch it
- Erect a leasing sign up on the property
How’s your local market? Do you have traffic counts? Is this mixed use?
-Anthony
For the first one we have put together demographic reports and all the permits, of course this was pre-Katrina, so all of that has increased. The primary is issue is filling them. This is our first try and I would ike to have some intent to lease forms signed. Problem is finding businesses to place there(where to look etc…)is the primary problem, we have some guarantee on one, just wanted more than that.
Noob question what is CID?
Don’t want to pay anybody, we never have in the past for building a business.
Yes it is a reail center.
We have a sign up
Having a RE company doesn’t cost you anything unless they fill the space. You can always do a non-exclusive listing with the RE company, this way you get paid for what you lease and they get paid for what they lease.
Do you know your S/F rents in the area? Is your space NNN or is it a gross lease? How did you arrive at these numbers? I’m always curious about this myself because I like to see how owners go about leasing their own property.
Typically commissions are front loaded, usually 6% of the gross, although you may negotiate that one and you only pay commission once. On a $15 s/f lease, that’s maybe 90 cents per S/F - you could just build it in to the OE on top of your price. Consider also there are people realtors reach that you do not. Yes, I am biased! LOL.
CID - that’s the commercial investment division. We have one here that’s hosted by the Board of Realtors. Check with your local real estate board.
-Anthony
Ok, our price per square foot is an average of the area not the lowest but not the highest either. Not sure what NNN is but we simply planned on the client paying monthly with preferably a 3-5 year lease.(with buy-out clauses etc…)
Yes, we did try a realtor and while we built the skating rink he was supposed to sell the future leases when he had 2-3 it would be built. He never got anything accomplished and basically after waiting 2 years told us to build it then he will sell it. I was under the impression it was better to get some interest and that realtors had more contacts in the business community than myself.
So now we are doing doing it ourselves and trying to learn this business.
That is why I am here trying garner some information whether through books, forums, associations etc…
I do appreciate all the help and ideas you are offering me.
Thanks,
Josh
NNN = Triple Net, or a Net Net Net lease. Tenant pays insurance, taxes and CAM.
-Anthony