Ever wonder why it is important to find a anchor business for a retail property? Check out this article to get more information.
When considering buying or building a
commercial property for retail purposes, a top priority is that you need
to locate an anchor business. An anchor business is the business that
would be the economic anchor tenant for this property, like a Winn-Dixie
grocery store, a Target store, or other major chain store. A primary
purpose of an anchor tenant business is to make your retail property
“safe” and more attractive to smaller potential tenants and also to
bring cars onto the property. One of these large types of stores could
be in the middle on the back of the property or at one of the corners.
Don’t do anything more until you secure that lease.
In commercial
retail property, finding an anchor business if key. You are not just
signing up people. You sign a contract with a seller and you buy with
what is called a “free look.” In the case of a commercial retail
property that you’re going to develop, that free look will last between
six months and a year, and you’ll probably have extensions to that. For
this free look, you give the seller a deposit of $10,000 to $20,000. You
want that money held in an interest-bearing account on which you
receive the interest. During this time, you must decide if it’s feasible
for you to continue with the deal.
The contract should stipulate
how you’re going to try to use the property. If you find that it’s
unsuitable for your use, you can sell it to someone else, or cancel the
contract and get your money back.
After you have it under
contract, it may seem like you have a lot of time. However, you need
every bit of that time to consider the property infrastructure. You’ll
have to keep an eye on your forces to ensure that by the time you close,
you’re actually going to build or develop any existing structures.
Finding
an anchor business for a commercial retail deal is critical to
completing a deal that will be successful for you for years to come.
Stew
Spence invites you to learn to high and even INFINITE returns investing
in commercial real estate with a group (on money you used to have
sitting in pathetic CD's at 4% or less) when you become a Select Member
with America's #1 Real Estate Network today! Join us for an upcoming
educational presentation to get information or to get started
now: commercial real estate investing
In 1989, Stew Spence became a full time
real estate investor, and has bought, sold or been on the business end
of hundreds of real estate transactions, both large and small, numerous
diverse types of transactions totaling over $40,000,000 including
commercial, mobile home park, multi-family, condo conversions and land
development projects with a specialty in foreclosed properties needing
rehabilitative construction. Now semi-retired, Stew is still an active
investor and has trained thousands to succeed with real estate. Today,
he is also retained as a Board of Advisor member with HIS Real Estate
Network, residential and commercial real estate buying group.
