fill up Low occupancy property

[Ben Haridim]

I’ve been searching for properties to invest in and like many, I have come across low occupancy rates. Wether it would be in retail or an apartment, the proforma (100% occupancy) would yield amazing cash flow and especially in retail, would sell for substantially more than purchased (once filled). Does anyone specialize in filling vacant commercial properties and has any strategies you can share to an aspiring commercial ”flipper”.

Thanks, Ben

[Don Konipol]

@Ben Haridim

In many areas retail is way overbuilt. Many retail centers need substantial upgrades to attract tenants and in many cases the obtainable rental income doesn’t justify the investment.

The main reason for obsolescence of retail properties are

1. Continuing increase in online sales especially with Amazon Prime next day delivery

2. Continuing shift from independent retailers to big box stores

3. Move toward shoppers desiring a walkable “experience” rather than a traditional strip center

As a result many retail properties can not be rented at a economically viable rental rate. These properties should sell for land value less demolition cost. And in all likelihood will sit on the market unsold until that price is agreed to by the seller.