Milford, CT · Member since 2019 · 3 posts · 1 vote
I recently bought my first investment property. The top floor is a one bedroom apt and the bottom floor is commercial space that was most recently a liquor store. I won’t rent to another liquor store so I’m wondering if anyone knows of any resources for finding good commercial tenants. Ideally I would like to have a gourmet grocer in that space. They’d make a killing!
Rental Property Investor · Las Vegas, NV · Member since 2019 · 1 post · 2 votes
6y
I say you're on the right track. You can search for all the gourmet grocers near by and see if they are expanding or would like to relocate. You can post on ad on craiglist. Craigslist is a common place people search for small commercial spaces. You can also have a commercial real estate agent list it for you. If you go that route, their commission is payed all up front after the signing of the lease. Which is typically 3%-6% of the value of the entire lease.
For example $1000 per month times 60 months = $60,000. 4% of $60k is $2400 due at signing.
Tenants may also request TI's (tenant improvements) which is payed by the owner to remodel the space for the tenant. Typically this calls for higher rent because you are amortizing the cost throughout the lease.
Rental Property Investor · Las Vegas, NV · Member since 2019 · 1 post · 2 votes
6y
I say you're on the right track. You can search for all the gourmet grocers near by and see if they are expanding or would like to relocate. You can post on ad on craiglist. Craigslist is a common place people search for small commercial spaces. You can also have a commercial real estate agent list it for you. If you go that route, their commission is payed all up front after the signing of the lease. Which is typically 3%-6% of the value of the entire lease.
For example $1000 per month times 60 months = $60,000. 4% of $60k is $2400 due at signing.
Tenants may also request TI's (tenant improvements) which is payed by the owner to remodel the space for the tenant. Typically this calls for higher rent because you are amortizing the cost throughout the lease.
Contractor · San Diego, CA · Member since 2011 · 37 posts · 23 votes
6y
Loopnet is a good place to advertise. It is difficult in my view to dictate a business to a location. You might not want a liquor store but it might fit the location. Good tenants are hard to find especially long term ones. As a landlord you can choose to be an advocate. But at the end of the day its a business.
Rental Property Investor · Gainesville, FL · Member since 2014 · 30 posts · 12 votes
6y
@Rachel Lysak I just posted this on another forum! I’m much the same way - I’m very particular as to the kind of business that I want in my commercial units. I’ve had a lot of success by making connections at local farmers markets. I’d approach and introduce myself to the more popular booths and vendors and of course purchase their items. After a month of frequenting their booths, I would bring up the available commercial unit that they’d be perfect for.
I always assist in the build outs but it’s also a selling point - “the layout will be built to your specs.”
I’ve gotten 5 tenants this way and haven’t lost one in 10 years.
Real Estate Agent · Seattle WA · Member since 2018 · 22 posts · 5 votes
6y
@Rachel Lysak
Hi Rachel. Contact a Commercial Retail Leasing Broker. (That’s what I do in Seattle). A broker will be able to get you the best deal and put your space in front of the most potential tenants and save you a ton of time sifting through non-qualified tenants. In addition, Retail Brokers handle lease negotiations all the time. They will do more in a year then most people do in their lifetime. Trust me, their price is well worth it. Feel free to DM me if you have questions!