Retail properties have been a mixed bag as of late. They took a hit during the pandemic when things were shut down, but if the retail business had an e-commerce presence they were able to scale accordingly. If you are considering your first retail property investment, here are just a couple of things to consider.

Strong Rent Roll

Previously we wrote a blog post on strong rent roll so if you want to go a bit deeper on the subject then go check it out. The bottom line…multiple tenants are viewed as more favorable than a single tenant, long-term leases are viewed as more favorable than short-term leases, and staggered expiration dates of leases are viewed as more favorable than leases expiring all at the same time.

Different Retail Property Types

Most people don’t realize that retail properties can be broken down into more specific property types. Each one has its pros and cons and lenders may choose not to finance specific types of retail properties. The pros and cons will vary based on the investor, location, etc so we won’t discuss those here. Below is a list of retail property types:

Single-Tenant
Multi-Tenant
Anchored
Unanchored
Local Shopping Centers
Big Box Retail Properties
Neighborhood Centers
Power Centers
Regional Malls
Community Centers

So evaluate the strength of the retail property’s rent roll and weigh the pros and cons of the specific retail property type as you consider your first retail property investment.

How To Get a Retail Loan?

Every retail property has a unique set of needs so it makes sense to work with a commercial loan broker to help guide you to the type of financing that fits your project. Simple Commercial Capital can help you find the right lender that specializes in the type of retail financing for your scenario. Give us a call at 1-866-554-1120 to discuss your options in more detail. Our goal is to make this process as simple as possible for you.