Pre Leased Strip Mall Development

[Michael Pittman]

Does anyone have any advice on doing a small shopping center development (3-6 tenants) and having it pre leased before construction and what that process looks like with the bank?

I have a couple of vendors who have expressed that they would lease from me if I did a retail development in Houston, Texas. I’m a Commercial Realtor so I understand the transaction process. Just don’t understand the development process between the Bank for a pre leased development. 

[Nik Moushon]

If you have a lease or two in contract when you go to the bank for financing they will LOVE you. If you have the whole thing leased they will basically give you a loan without asking any other questions. Ok, not really, but you will basically guarantee yourself a loan. 

This is done all the time by the way. So not new or uncommon. The bank will know what to do or at least know what to ask for. 

But seriously, get as many leased now as you can, it will make everything easier down the line. Don't lower your standards for a tenant though.