Shopping Center Investing for Beginners

Shopping Center Investing tips for Beginners from Peter Harris of Commercial Property Advisors
0:00 Overview
1:14 Types of Shopping Centers
4:34 4 Critical Things to Know
10:17 3 Common Leases
15:20 Why Investors Love Triple Net Deals
21:01 Investment Guidelines

[@CommercialPropertyAdvisors]

Get started investing in commercial real estate with my help by applying to our Protege Program: www.commercialpropertyadvisors.com/protege-program

[@johnnyb33good21]

Thanks for the breakdown. I own 45 multi-family units and There's a gentleman in the Phoenix Arizona Metro that owns tons of shopping centers named" Michael a Pollack" after I kept seeing his buildings I finally looked him up and I'm wanting to learn more about shopping centers. He owns over 100 different properties I like how the shopping centers can have triple-net leases and its not as management intensive compared to my apartment buildings

[@CommercialPropertyAdvisors]

The grass is not greener there. That asset class is getting hammered right now. Anchor tenants are pulling out and vacancies are soaring. Everyone needs a place to live. Our retail owner contacts are struggling and trying to sell as fast as they can to get out.

[@johnnyb33good21]

@CommercialPropertyAdvisors that's a really fair point. I do see multiple for lease signs on not only his buildings but othe other shopping centers. To be contrarian, if there's blood in the street so to speak as in occupancy isn't as high for Office Buildings and shopping centers wouldn't it be a good time to write offers and pick up a property on the discount?

[@elliottvaughn700]

Thank you so much for making this, very well presented!

[@holdmyrod]

Hi Peter, thanks for another great video. I found your channel a couple weeks ago and have watched probably half of all your videos already. Very informative! Please do a few more on retail properties, especially strip mall types. Thanks Paul.

[@itsmebedazzle]

This was awesome!

[@westdiddy4825]

very detailed video and always appreciate your knowledge!!!

[@mobileyt1842]

I wanted to say that your knowledge of real estate investing is very good.

[@mobileyt1842]

You are good at your Job and you understand the real estate market very well.

[@alexgoumilevski5864]

Thanks for taking the time to run through all of these points! Great video!

[@DrAAAli]

Peter this is outstanding content, please keep it coming.

[@kingcipher7j.e.w.e.l.s302]

Great video. Very useful information.

[@laughandluxe]

Great video.

[@drmarabemothibaobstetricia3172]

great video, thank you

[@ChristianPierreW]

Excellent video. Thank you.

[@MR-AK]

Good stuff. Some common sense nuggets. 👏

[@ronaldkeene2699]

This is a great video, don't listen to the last person

[@JayFresh]

Great video! I really appreciate the breakdown of everything, I learned a lot.

[@pjtaei552]

Very well presented thank you

[@jjhernandez5244]

Thank you.

[@illyaswan]

Thank you, sir.

[@michaelchristopher2003]

Great vid bro

[@milleniaxpose9525]

Amazing gems given 💎💎

[@bluestonepty]

Thanks

[@jamalcompton379]

How do you find these Anchor tenants when the ones that are there move?

[@frankli7848]

great

[@mobileyt1842]

What should you take to a consideration having in a contract about a real estate? What should i take to a consideration finding my client the best real estate investment for them working as a real estate lawyer?

[@robertsutton3001]

I found a deal where the strip mall is for sale or lease and owner financing available. I plan on buying your book today. I need to know how to analyze this deal so I can bring this to someone who’s an investor. I am also a real estate agent.

[@mandyrose5822]

Peter do you evaluate deals for other who are new to strip centers?

[@thegreatjohndough8888]

ummm that's why you take notes

[@IamAprobl3m]

How do you find out avg price per square ft is in comparable plazas?

[@thecatwiththehats]

I thought as a owner you can rent the store as is. (8:00) Reason I thought this because the new tenant will make renovations. Can that be added onto the new lease that it is the tenant responsibility?

[@PatrickdaStarr]

Can we get an updated video for this topic

[@Bad_Fur_Day]

Peter, Due to the changing shifts in consumer/millennial preferences, do you think shopping centers are a dying breed? Retail is now online - it'd be tough to secure tenants for a shopping center (look at all of the stores closing, it's no surprise). Groceries will be online as well - Amazon is slowly implementing AmazonFresh so consumers will be inclined to shop for groceries from the comfort of their computer. Great video as always.

[@happyhado]

You can't have your haircut online or get your nails done or pick up parts for a remodel job. You wouldn't wait to have paint delivered or take your kids to Karate or go to the gym or grocery. There are some things you just can't get online.

[@Themilkmanmilkermilkingmilkmen]

@@happyhado mall is still ass though it's no longer a spot to hang which means less people will go. Malls are truly dying with retail. I dont have or know very many people who go to the mall for fun anymore I'm still a teen

[@QinahBahtIsrael]

In the area I live in gas stations are far out and restaurants, then the few restaurants we do have out here are small unheard of brands . So in my opinion what does the area your planning to open your shop at need the most

[@ispeakmucho]

E-consumerism is still floating around 13% of all retail sales in 2020. It will be some time before these are fully obsolete The issue was there were too many in some areas

[@jdjewellpa]

Ok, I just got a rent roll on a potential 7 unit shopping center deal. I am a little confused on this break down and the broker that sent to me over the rent roll spread sheet went ghost. For example: Tenant #1 First column I have NNN $2457.74 / Second column say PER MO. $204.56 / Third Column NET RENTAL ACTUAL $1,350.00 Next tenant Tenant #2 First column I have NNN $2954.08 / Second column say PER MO. $246.17 / Third Column NET RENTAL ACTUAL $825.00 When I subtract from column 1 with column 2 I don't get anywhere near column 3 figure. I just don't understand, could someone explain to me please? Thank you

[@amosajo7250]

This is a great video. I learned a lot. Question: I am considering on investing in strip center for the first time in a great location but some of the leases have less than 2 years left. Should I be concerned?

[@CommercialPropertyAdvisors]

Yes. A lender wants to see at least 3 years or they will request you get an extension on those that are only 2 years.

[@preciousshongwe4531]

What if you have land but don't have the money to build the shopping Centre.Can you lease the land?/How do you go about that ?

[@rayleneclarke1064]

But how do you find strip malls for sale? And how do you get financing to purchase it? Is there a part 2?

[@tj55749]

What do you prefer? Shopping centers? Or apartment bulidings?

[@CommercialPropertyAdvisors]

Both.

[@whoxwexare2014]

either

[@LOUDMOUTHTYRONE]

Laundromats

[@dippah1]

This is great, I thought the business owned the fixtures

[@carlajordon4540]

Oh and I forgot to inform you it has been zoned commercial so that has been done years ago

[@arameh]

for the replacement value, wouldn't insurance cover a fire? why do I need to spend less than what the building costs, even though that's the sound thing to do. where I live the housing market and l has had a tremendous increase, to a point where I could just buy a shopping center and actually reap income. who can I consult regarding a commercial investment? are there a reliable pool of investors group I can join? how could I know when I will have diminishing returns above a number of pooled investors? also if your anchor leaves, wouldn't triple net cover under garanteed lease?

[@CommercialPropertyAdvisors]

Sounds like you need a commercial real estate mentor.

[@frankchambers2114]

50% LTV is very hard. The average price of a mall is about $ 1.7 million in a class B location. Nevertheless, this is a great video. (Maybe the 50% could come from a 1031)

[@vickenbastajian2369]

Hi Peter do u start your investment from your home office 😊!!$$

[@midasapprentice8670]

What do you do if the grocery store as a tenant that leaves? Grocery store spaces are unique to themselves not just any business can replace that space.

[@CommercialPropertyAdvisors]

When an anchor leaves, it's a big problem with Shopping Center investing.

[@midasapprentice8670]

@@CommercialPropertyAdvisors 'Preciate you taking the time to answer my question.

[@midasapprentice8670]

@@CommercialPropertyAdvisors Hypothetical situation: I own an apartment complex during Covid and the moratorium allows them not to pay me. I take out a PPP loan to stay afloat. How are landlords paying back that loan? Are the tenants who were there during Covid responsible to pay me for back rent? Or are they not responsible and that's why rent is so high now because landlords have to pay back those PPP loans?

[@IamAprobl3m]

Who would be able to draft up a shopping center lease agreement for me?

[@carlajordon4540]

Hi I have purchase a 2-acre land over 9 years ago anticipating to build a mini strip mall, it can hold around 13 or 15 stores how can I go about getting investor to come in with me to get the store going, and is this a great idea

[@jeremymedrano3424]

Still open the land?

[@jeremymedrano3424]

Own*

[@jamesmontague7382]

Carla Jordon what city

[@ericeverson5956]

Don't forget Target stores, Peter. The former Dayton's in Minneapolis,MN bought J.L. Hudson's in 1969. Target was first opened in 1962 by the Dayton Company. My mall has a Target & put in a grocery store in 2012. CVS came later. Thanks much Peter.

[@davidandrews6899]

What's considered a good profit margin when dealing with NNN lease properties? For example, if you have a $ 2m property and your NOI is 132k annual and your mortgage come to 120k annually. Would this be considered an average profit margin or would that be considered too low?

[@CommercialPropertyAdvisors]

If your debt service eats up all your NOI, where's your return on investment? In your example, it is reasonable to assume that money was invested to acquire that property, so how could you have any reasonable cash on cash return number with nearly $0 of net positive cash flow after debt service?

[@polcore443]

How do I get a business mentor to help me buy a strip center in georgia?

[@CommercialPropertyAdvisors]

Apply here: www.commercialpropertyadvisors.com/protege-program

[@drmarabemothibaobstetricia3172]

how do I get hold of you?

[@CommercialPropertyAdvisors]

Apply to my Protege Program here: www.commercialpropertyadvisors.com/protege-program

[@usahomesolutions8552]

*** Looking for a Buyer for a Shopping Center*** KCMO

[@buetifulkay12]

This is a great video it is very informative, however it is too long with too much information packed in it. I think you should have separate those five points into two or three separate videos.

[@oscardiaz4641]

How much does your mentor program cost.

[@atlascommercial8333]

Silence you imbecile