- Present rents are not inflated for the area. Look for tenants paying below market rent, so if you must replace the tenant, it will be easy to do so, and there could be possible upside if the tenant leaves in the form of additional rent.
- Building is not characterized with functional obsolescence for today’s usage. A good example of this is many chain tenants like Starbucks, or CVS, look to have a drive thru for their stores.
- Location not declining in population.
- Good access to roads in form of curb cuts, or easements across adjacent properties to roads.
- Good Visibility and high traffic counts in front of property.
- Good Income levels in area and good employment levels.
- Zoning or deed restrictions, not overly prohibitive. Property not unreasonably encumbered by other properties having rights to cross over the property being considered, or to use the property for any other use.
- Premises does not need too many capital improvements to bring building up to proper standards.
- No Environmental issues to address.
- Good quality of tenants presently in the building.
- Will lenders be willing to lend on the property with standard minimum equity down and or non-recourse finance.
- Present leases have favorable terms. Many time landlords will be anxious to fill a vacancy, especially with a credit rated national tenant, and will agree to a “kick out clause” allowing the tenant to cancel the lease, or a lease that is advertised as NNN, but has unexpected landlord responsibilities.
- Good Cap rate for Property.
- Does it have a Value-Add component?
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April 28, 2023 -
April 28, 2023
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March 8, 2023
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