NNN leases in old downtown buildings

[Ethan Brown]

I’m interested in investing in some old buildings in a downtown with a lot of potential. There are small businesses there currently, but I’m always trying to think ahead. Anybody have experience in attracting big businesses to old, historic downtown areas?

Specifically interested in NNN lease deals. How do you get businesses interested in the heart of a downtown rather than using a new building on the outskirts? I'm thinking of old buildings I've seen in Nashville/Franklin, TN with big name businesses in them.

I am new to real estate and this may be a naive question, but I'm very interested in eventually expanding to NNN. Curious on what I could do now to get there! Thanks

[Katie Neason]

Just couple of quick thoughts on the subject.
1. National chains have very specific bogies that have to be hit to consider a market or submarket. Ie income, density, drive by traffic, etc. If your downtown demographics don’t hit their minimum standards you will not get on their radar regardless of the amount spent on the building. From there they will look at site characteristics such as location, parking, drive thru, etc. 

2. The demographic hurdles are similar with the majority of all the national chains so typically there either are or there are not national chains present. There are a couple of exceptions. Subway comes to mind. They will go anywhere. 
3. National Chains in a downtown can be a “dirty” word. They may even have restrictions against it. You will want to check with the local jurisdiction. 
4. If the location supports national chains then it is a matter of working with the right brokers that represent the chains you are interested in. 
5. it is a bit of an uphill battle because it is easier for development arms of these national chains to go into newly developing projects and have something built the way they want from scratch, rather than have to retro fit an old building. 
6. I would focus on more regional type  companies that you think would be a good fit and reach out to them directly. You will likely get to talk to the decision makers and find out pretty quick what the demographic requirements and site parameters are.