By Garth Bevan
Buying and renting out a strip mall could be a great investment. What could be better, especially if you have a business of your own? You can use one office for your own company and then rent the other spaces for other retail establishments. But before making such a purchase, here are some things to consider.
Location
Stefan Soloviev states that location is key, especially when purchasing commercial real estate. You want a mall that’s close to a good-sized population and on a lot that’s easy to reach. If it’s hard for potential customers to get to your property, your prospective tenants won’t get the business they need and you won’t get your needed rents.
Good Parking
Is there plenty of parking for all the customers? If spots are limited, this won’t be a good location for you or your tenants. The last thing you want is for potential customers to become frustrated because they can’t find a parking spot. You need enough space for the customers you currently have and more space for your hopefully growing clientele.
Easy Access
The building has to be designed well, meaning customers can easily enter the building and reach the shops or businesses they are wanting to visit. Is there good signage out front, and is there more than one entrance into the building? The more ways to get in, the more desirable the building.
Tenants Customers Want
You not only need to think about getting tenants, but you want the right kind. You need a magnet that will draw in customers for the other businesses in the mall. A popular fast-food restaurant would be a great draw.
Also keep in mind, that you should give your tenants short leases. If one of the businesses in your mall is failing, then you need to release them quickly so you can find another tenant to fill that space. An empty shop makes your strip mall look like a failure, and you want an attractive and successful-looking mall.
Rents
The amount of rent you receive from your tenants will determine whether you should buy the mall at all. If you take out a loan, think about how much you can afford and whether the rent from your tenants will cover your expenses.
Keep these things in mind if you’re considering buying a strip mall. With the right building and tenants, this could be a profitable venture.
