NATIONAL CREDIT TENANTS - Taking the portfolio to a new level
BP Nation! Long time no talk. I've been listening to the podcasts regularly and checking out the forums from time to time. I'm stoked on the amount of growth and ever increasing quality of posts and topics I'm seeing.
Short questions: What is the best method, or your personal recommendation, for transitioning Mom and Pop power retail shopping centers into properties with multiple National Credit chains as tenants?
Long Question and Details: I was hired on as a leasing and operations manager for a Souther California private investor portfolio with 20 +/- properties at any time. We took leasing from 80%+/- to 99%+, so the occupancy is very strong and we've proven a track record for leasing and managing quick turnaround on filling spaces. All retail centers are B-/C level properties, VERY high traffic intersections, and low income areas.
I've had some minor success bringing Nationals in in the past, but not enough to where I feel confident with this tenant type.
Any help or advice is greatly appreciated!! :)
Originally posted by @Nic DeAngelo:
BP Nation! Long time no talk. I've been listening to the podcasts regularly and checking out the forums from time to time. I'm stoked on the amount of growth and ever increasing quality of posts and topics I'm seeing.
Short questions: What is the best method, or your personal recommendation, for transitioning Mom and Pop power retail shopping centers into properties with multiple National Credit chains as tenants?
Long Question and Details: I was hired on as a leasing and operations manager for a Souther California private investor portfolio with 20 +/- properties at any time. We took leasing from 80%+/- to 99%+, so the occupancy is very strong and we've proven a track record for leasing and managing quick turnaround on filling spaces. All retail centers are B-/C level properties, VERY high traffic intersections, and low income areas.
I've had some minor success bringing Nationals in in the past, but not enough to where I feel confident with this tenant type.
Any help or advice is greatly appreciated!! :)
A national credit tenant has certain needs, and your property would need to meet a majority, if not all, of those needs e.g. population, household income, location, traffic, etc.
In addition, many national retailers need to be in A+ to A- locations with B properties often a secondary option in unique situations.
My recommendation would be to figure out who your national credit tenant audience would be for the individual units in the property and then research their new location criteria. Many times this is located on their website, but if its not you can call their regional real estate director.
The other thing I would recommend is to simultaneously look at how you can redevelop your property to upgrade it so that it can compete with other A+ properties in the marketplace. Not all buildings have to be new construction, just look at so many of the older retail buildings in Fullerton that have national tenants, but what owners of older functionally obsolete buildings are doing is completely redeveloping the interior and exterior of their properties to attract a better credit tenant and achieve higher rents.