Landlord Tenant Risk

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If you’re looking for national NNN tenants and their numbers, this website is great. https://netleaseadvisor.com/tenant/davita/

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By Asset Class

Non credit worthy client?

• Push back on up front expenditures such as TI and remodels
• Blame your lender requirements

Retail

Small in-line vs Big Box Anchor vs Shadow Anchor (someone else owns big box)

Target low price per foot or rent in place is less than the market is bearing with short leases, some amount of vacancy (25%+)

Service Industry is more stable than goods

Retail: parking, smaller suites better, visibility, traffic, decent population

High traffic: over 20k cars a day (depends on the market)

Shortest lease is 3 years

Tenant Improvements (TI)

• Ask how much TI is required to open and consider splitting costs in half.

Franchises

• Avoid signing a 10-year lease with a first-time franchisee. Opt for a 5-year lease with renewal options instead.
• Lower commission rates (3% for year 1, 1.5% for year 2).
• Franchise Leases: Review franchise riders carefully and consult an attorney who recently handled a similar lease.