Commercial Retail/Warehouse/Office Spaces

[Wendell Butler]

I am getting interested in learning more about the space and it’s options, benefits and possible growth potential.

I currently focus on commercial multifamily properties, which is great and all, but I feel retail/warehouse/office space can be a stable defensive move to do along with multifamily. Also it seems you can have your tenants almost cover all your expenses with the NNN and NN ways, which seems pretty awesome.

Can you increase the value/NOI as fast as commercial multifamily? I assume you buy locations that need work and then fix them up to be able to host/interest businesses better and charge more once the building is nice, which in turn increases it's value. Is it very location dependent, for example a storefront you want high foot traffic or off a highway? I would assume so. The leasing are much longer and more stable correct? It just seems pretty cool/interesting to me! Also helping small business owners is just an awesome thought.

I am a newbie on this space and in the very beginning stages of learning, but would love to see if anyone has experience, recommendations and/or stories about this space!

[Wendell Butler]

Quote from @Ronald Rohde:

There's a lot to unpack in your post.

Retail/Industrial/office are all very different in terms of economic outlook, investment thesis and operations.

NNN does have reimbursement for operating expenses. The longer terms leases limit your downside, but also cap upside until a new tenant comes in or rent resets.

Fixing them up generally means improving vacant units, vacancy=risk.  Follow my Youtube channel for more details!

Awesome, I will definitely give you a subscribe to learn a bit more!