Strip Center updating?

[Christine Morrison]

I purchased a small 3 shop retail center.  It is pretty run down and I have been struggling to keep the Convenience Store in place (I'm on my 3rd owner).  The area is great but The rents are low because of the condition.  I was lucky to get the place fully leased 6 months after purchase. 

My question is, should I fix up the property?  I can put in $30k now and rewrap the front and sides, but it needs new signage, parking lot and other updates.  Right now the rents  cover the basic loan, base taxes and base insurance and a small profit which goes for repairs.  I can't increase the rents for 4 years.  So how can I justify updating and spending the money to my partner, that I want it to look better?

This would be my bill as the leases are written. No NNN.

Also, one space needs a new AC.  The lease states he must purchase his own but he wants me to pay for it since he may not be there for the life of the AC.  How should I handle that?

Can you explain to me how you have updated buildings?

Thank  you in advance,

Christine Morrison

Houston, TX