Hello, I am developing an approximately 6,500SF strip center in Brandon, Florida on SR-60.  I am looking for advice for signing a lease with a national credit tenant.  Below are some quick highlights about the site:

• Corner at lighted intersection
• Approximately 65,000 AADT on SR-60
• 212,000 people and over $76,000 average household income within a 5-mile radius
• Approximately 1.02 acre site with 290 feet of frontage on SR-60
• Less than 1 mile from Brandon Regional Hospital
• Surrounded by national retailers

Thanks!

Craig

You didn’t really say what kind of advice you are even looking for. How to find one? What kind of lease or terms? You might want to be a little more specific so someone can help you more.

Hi @Craig Bazarsky . Welcome to Bigger Pockets! To assist as much as I can (per Brandon's post), it sounds like you're curious about signing a national credit tenant, is that right? 

To be clear, this is not something I've done yet, but if you have a more specific question or obstacle as far as that is concerned we have a better chance of getting help if it's as clear as possible to viewers of the post what you're looking for. Of course I'll tag someone in if I can think of anyone I may know who can answer.

You should listen to bigger pockets podcast show #253 with David Puchi. He owns 50 strip mall and has good advice about finding big brand tenants. He talks about creating a relationship with a broker who can get in touch with the broker for the brand you are trying to land.

Thanks, all! I will definitely check out show #253.  I am just starting the process and trying to find a national tenant.  My first question is about landing that national - should I be cold calling real estate departments? brokers? landlords of other nationals?  Once I start having the conversations with tenants, I will have a lot of additional questions I am sure!

@Joel Owens is probably the BP member that can give some good insight. 

So Craig you own the land or is it under contract? If under contract you would perform  a void analysis and see what is the (highest and best use tenant) that could pay the most rent and sell for the best cap rate on resale.  

You would find out who the tenant rep broker is for that brand and area. I find only maybe 20% of national tenants deal with you directly and just refer you to their broker tenant rep. They want someone to scrub the lead and if it makes it through certain filters then they might look at it.

Frankly they are trying to avoid newer developers trying to learn the process. Even if they like the site the question becomes can the developer do what they say they can do in the time they say?

If you get interest from the tenant you want then they generally place an LOI and then work toward a lease signing. You want the lease commitment before closing on the land. This is generally true for STNL properties. MTNL the lender wants some percentage of pre-leasing. Hopefully you did not already close on the land unless you bought it for dirt cheap.

Example there is a huge difference  in rent and what cap rate something sells at like a Mcdonald's or Chick Fil A versus a Bojangles. Same piece of dirt but one resale price is 2,500,000 and the other is 4 million for almost same sq ft build. 

To buy the land and then go searching out tenants to see if you can get rent that works to develop is doing it backwards. Sellers of course want you to buy the land and figure it all out later. Great for them but bad for you unless you get it so cheap any tenant and lower rents will pencil and make a profit just not as much as the national tenant you wanted etc. 

Originally posted by @Craig Bazarsky :

Hello, I am developing an approximately 6,500SF strip center in Brandon, Florida on SR-60.  I am looking for advice for signing a lease with a national credit tenant.  Below are some quick highlights about the site:

• Corner at lighted intersection
• Approximately 65,000 AADT on SR-60
• 212,000 people and over $76,000 average household income within a 5-mile radius
• Approximately 1.02 acre site with 290 feet of frontage on SR-60
• Less than 1 mile from Brandon Regional Hospital
• Surrounded by national retailers

Thanks!

Craig

Are you developing and holding or developing and selling once tenants are in place?