Shaun Benderson on Investing in Retail Real Estate

The world of commercial retail properties is very big. It includes large retail malls, big box stores and other single-tenant properties, but also small convenience stores, strip malls, and more. People like Shaun Benderson understand how big the economic driver of retail real estate is. Places like Phoenix, Tampa Bay, and Sarasota rely heavily on commercial projects, with people constantly keeping an eye on the news for a scoop on the next big retail project that could bring jobs to the area.

Retail properties have to be properly managed and maintained as well. A lot of businesses, however, own these properties to offset operational expenses. Indeed, most business owners will prefer to lease their retail property rather than to purchase it. The result of this is that retail makes for a very interesting investment, but only for those who truly know what they are doing.

Shaun Benderson on Gross Sale Profit Sharing

The income a property owner earns on retail property works the same way as for other commercial real estate. However, there is a key difference, which is that in retail real estate deals, there is the potential to also obtain a share of the gross sale income. This makes sense, because landlords will work very hard to make sure the property remains in perfect condition and that everything functions properly. This is crucial for the tenant, meanwhile, because they need to deliver a pleasant shopping experience to their customers. As such, everybody works together to make the business as efficient as possible, and everybody shares in that as well.

Shaun Benderson on Tenant Mix and Locations

If you want to invest in a retail property, then location is incredibly important. Any building can have a level that is classed as retail. However, it is vital that there is sufficient sales volume if there is a profit to be made, and that can only happen if the location is right. This is of concern for both the landlord and the tenant. The better your location is, the more the business can earn, the more rent you can ask as a landlord. Hence, location, location, location! And location does not only mean that it is in a nice part of town, but also that it has parking, easy access, is disabled-friendly, and so on.

If you are interested in investing in a shopping mall, then it is important to attract more people by increasing the mixture of stores within it. This benefits each of the businesses there as well. This is why you should try to attract restaurants, cinemas, supermarkets, and anchor stores.

The complexities of investing in retail real estate should be properly understood before you even considering moving into this. You also have to understand how difficult it is to receive financing. The amounts involved are very high, and the risk is also tremendous, so this is understandable. But it also does mean that you have to be prepared to work very hard at showing that you have a viable plan in place.