Good Morning David, I thank you so much for your reply. I do know that Commissions are negotiable. I am currently working in New Bern, North Carolina Area. Our Area is booming with new growth. I am working with some developers that have been buying up alot of "dirt" properties for development. I am currently working with a Development Group that has developed Carolina Colours Towne Centre. This consists of a Strip Center, Anchor is Harris Teeter Grocery and Gas, We have many other Tenants and are almost completely leased. Now I am working on the OutParcels. We have constructed a 240 Unit Apartment Complex and will soon be constructing 4 large Medical buildings there ( One of which Carolina East Medical Center Hospital has taken) While I am working with these new Developers on another side of town: they are clearing 44 acres right now: I have another meeting with them on Tuesday, this week. I have full subscriptions to : CoStar, Loopnet, Crexi, Retail Lease Trac, Analysis Pro.... Even though this area in North Carolina is booming with new Residential New Construction Developments and many people are coming here to retire. The Demographics on paper do not look that good to attract the big players. I am trying to get my feet in the door with these new Developers that are buying alot of land..... My approach for Tuesday's meeting is to tell them that we need to produce some renderings of what our Vision is for this new Commercial Land ......and them approach the Business Entities. I believe that we need a Grocery Store first and the rest will fall into place. .... Any suggestions you may have for me are greatly appreciated..... Thank you for taking the time to read this and help me. ____________________________________________________________________ Question ? Is there anywhere I can find out any statistics perhaps on what a Land Lease went for with say a McDonalds. 99 year lease? Or any statistics I can find on what properties are on a Land Lease? ______________________________________________________ Question? Also, where can I go to learn how to evaluate a Strip Center or Shopping Center? I started with CCIM years ago and took a few courses. But never finished. I would like to be able to approach Shopping Center owners to Sell , but need to know what I am talking about as far as Evaluating the worth of the Shopping Center. Again, Thank you so much for your valuable input. Greatly appreciate it. Have a great Sunday ! Best Regards, Melinda Bianchi
The best comps are almost always local. I think you can get some insights to that based on rents. The prices and the rents should roughly correlate. If you can estimate the approximately rents for an area, then you can estimate the approximate price range for land in the area by using an average cap rate. Outparcels tend to be more because the main center is the driver for the outparcel. That is not to say it will give you a hard price, but it should help you figure out a range of values that make sense. Regarding what things work, I think that Retail Lease Track is a good tool for that. For example, a company in Retail Lease track will give the demographics they like as well as any other criteria, such as proximity to other stores. Also, they will sometimes mention other brand that they like to be close to. For example, Lowes loves being close to Walmart. Regarding Land Leases, that depends on the market. Some places do almost no Land leases, so it is hard to compare. But you can again estimate the value by sales comps and doing a comparison of a discounted value of equal payments over the term of the lease at the market cap rate for your area. Hope that helps! Good luck with your meeting! David
Thank you for making this video. It has helped alot.
Thank you! Glad you liked it
great video
Thank you. I’m glad you liked it!
Hello! Thanks for your video. How do you calculate lease commission? Is it 3% of base price of the terms? If that the case so we remind them?
Good Morning David,
I thank you so much for your reply.
I do know that Commissions are negotiable.
I am currently working in New Bern, North Carolina Area.
Our Area is booming with new growth.
I am working with some developers that have been buying up alot of "dirt" properties for development.
I am currently working with a Development Group that has developed Carolina Colours Towne Centre.
This consists of a Strip Center, Anchor is Harris Teeter Grocery and Gas, We have many other Tenants and are almost completely leased.
Now I am working on the OutParcels.
We have constructed a 240 Unit Apartment Complex and will soon be constructing 4 large Medical buildings there ( One of which Carolina East Medical Center Hospital has taken)
While I am working with these new Developers on another side of town: they are clearing 44 acres right now: I have another meeting with them on Tuesday, this week.
I have full subscriptions to : CoStar, Loopnet, Crexi, Retail Lease Trac, Analysis Pro....
Even though this area in North Carolina is booming with new Residential New Construction Developments and many people are coming here to retire.
The Demographics on paper do not look that good to attract the big players.
I am trying to get my feet in the door with these new Developers that are buying alot of land.....
My approach for Tuesday's meeting is to tell them that we need to produce some renderings of what our Vision is for this new Commercial Land ......and them approach the Business Entities.
I believe that we need a Grocery Store first and the rest will fall into place. ....
Any suggestions you may have for me are greatly appreciated.....
Thank you for taking the time to read this and help me.
____________________________________________________________________
Question ?
Is there anywhere I can find out any statistics perhaps on what a Land Lease went for with say a McDonalds. 99 year lease?
Or any statistics I can find on what properties are on a Land Lease?
______________________________________________________
Question?
Also, where can I go to learn how to evaluate a Strip Center or Shopping Center?
I started with CCIM years ago and took a few courses. But never finished.
I would like to be able to approach Shopping Center owners to Sell , but need to know what I am talking about as far as Evaluating the worth of the Shopping Center.
Again,
Thank you so much for your valuable input.
Greatly appreciate it.
Have a great Sunday !
Best Regards,
Melinda Bianchi
The best comps are almost always local. I think you can get some insights to that based on rents. The prices and the rents should roughly correlate. If you can estimate the approximately rents for an area, then you can estimate the approximate price range for land in the area by using an average cap rate. Outparcels tend to be more because the main center is the driver for the outparcel. That is not to say it will give you a hard price, but it should help you figure out a range of values that make sense.
Regarding what things work, I think that Retail Lease Track is a good tool for that. For example, a company in Retail Lease track will give the demographics they like as well as any other criteria, such as proximity to other stores. Also, they will sometimes mention other brand that they like to be close to. For example, Lowes loves being close to Walmart.
Regarding Land Leases, that depends on the market. Some places do almost no Land leases, so it is hard to compare. But you can again estimate the value by sales comps and doing a comparison of a discounted value of equal payments over the term of the lease at the market cap rate for your area.
Hope that helps!
Good luck with your meeting!
David