Evaluating retail shopping complex

[Archana Rath]

I am looking to buy a retail shopping center dallas,tx.  What is the best way to decide on the price? Any tips or suggestions will help

[Joel Owens]

Get a good commercial broker that has tons of experience with retail centers on the purchase side.

I usually get on a call with my clients.

I have many buyers in Texas.

First thing is are you paying all cash or some down with financing?

Where is the money coming from? Do you have to sell something and do a 1031 exchange?  Is it just you buying or other family and friends in a partnership? Are you trying to syndicate and be a sponsor?

What price point are you trying to buy in? Cap rate varies by purchase price such a 3,5,8,10 million dollar levels. Financing available varies as well. For retail centers you could have all national tenants, some mix of national and regional to mom and pop, all mom and pop. Some can be vacant, half way leased up, or fully stabilized.

The metrics on what questions to ask vary. I would have to know your risk tolerance, your desired cash on cash returns, your location requirements to see if what you are trying to do is realistic or not. I look at about 1,000 a week nationally for clients. I stopped counting awhile back.

Hope it helps.