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Updated almost 7 years ago on . Most recent reply
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Buying lists of prospective retail / medical space tenants
We are in contract on a shopping center that has numerous vacancies. We would like to mail a flyer to business owners in our county. This would target business types that would be a good fit for the center. (Martial arts, fitness, certain types of medical, etc.)
I would appreciate any input from anyone who has done this and how it worked out.
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Would not waste the time. I tried doing this on my own before and calling tons of tenants. Most have a tenant rep broker they use and connect you up with them.
Cap rate is usually tied to location ( urban,suburban,rural), location and quality of the tenants ( national, regional, mom and pop), and terms of the lease ( primary lease term in years, level of lease guarantee, rental increases, any termination rights, disclosure of sales, restrictive use rights, co-tenant anchor clauses,etc.).
You need a void analysis from a landlord rep leasing broker. This usually shows what is the highest and best use of your center and what is missing in the area for tenant mix. Martial arts and fitness pay low rents per sq ft compared to medical tenants. Medical tenants generate a lot more cash. I know I am a 3rd degree black belt. I looked at karate school model over a decade ago as an investment. It is more an owner operator business just generating enough income and profit to keep the lights on. Same with fitness so net worth of the person backing the lease is critical.
With medical they have high margins per customer and drives lots of profit. I have doctors as commercial retail clients and they all make tons of money I mean a lot each year.
- Joel Owens
- Podcast Guest on Show #47
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