The lease often matters more than the building
A drugstore on a fifteen year lease and the same building with two years left can be worth very different amounts. Retail value depends heavily on the tenant, the lease, and the trade area, so that is where our analysis starts.
What we review
- Remaining lease term, rent increases, and renewal options.
- Expense reimbursements and any co tenancy or percentage rent clauses.
- Tenant strength: national, regional, and local tenants carry different risk.
- The trade area: traffic counts, visibility, access, and competing centers.
- Dark value for single tenant buildings, meaning what the property is worth if the tenant leaves.
Property types
Neighborhood and strip centers, with or without a grocery anchor. Single tenant net lease properties such as pharmacies, auto service, banks, and quick service restaurants. Improved and vacant pad sites. Mixed use buildings with retail on the ground floor.
Uses
Retail appraisals support lending, tax appeals, and estate and gift matters, as well as buy, sell, and hold decisions.