Strip Center Underwriting

[John Dorma]

Hi, 
I have issues with figuring out how to underwrite a strip center . The center currently has 5 tenants .

• What vacancy loss should I take into consideration since currently  month-to-month agreements are in place?
  • I though of at least 10% because 100%/5 tenants = 20%share per tenant. If I loose one for 6months thats a 10% loss in REV, right?

How do you do your underwriting with strip centers compared to multifamily apartment buildings?

Thanks,

John