Mixed Use 11 Story Retail & Apartments Replacement for the Swan Cleaners Building in Downtown Columbus

New 11-story mixed user with net leased retail and restaurant space for lease completes Columbus’ River South

Another terrific concept from local developer Brent Crawford. This time to replace the three story Swan Cleaners building in downtown Columbus at the intersection of Cherry and High St.

The building is proposed as an 11 story with 120 units and ground floor triple net retail for River South in Downtown Columbus. I have no idea how much Columbus net leased retail or restaurant space there will be.  Whatever it is, it will make us Columbus commercial real estate agents and brokers happy to have some new inventory.

The project goes before the Downtown Commission next week on September 20th. At least with the Downtown Commission the project isn’t likely to come back with the top four or five stories missing as would be the case with a few area commissions just to the north.   I suspect this one will be left intact.  To have population growth in the Columbus central business district, we need density.  In order to do that, we need to build taller.

The local architectural firm, Design group created the design. The rendering faces northwest with the two partially completed LC properties just to the north.  With this property, River South is just about complete.  That’s start to finish in eight years.

Given how tight the local commercial real estate market in High Street corridor has been over the last many years, new retail developments are leasing up before construction begins. If you have any interest, feel free to contact me, Scott Harris Realtor, at 614-905-6614.

Short North, Clintonville or OSU? Retail or Restaurant Space for Lease – Columbus Ohio

Looking For Triple Net (NNN) Lease Retail or Restaurant Space in Short North, OSU or Clintonville?

Over the last few years it’s been just about impossible to find net lease retail or restaurant space available in the High Street Corridor from downtown Columbus through the Short North, OSU campus and Clintonville.

That’s about to change as we get into 2017 and 2018 with many new-build and repurposed projects coming on line. True, we’re finally going to have some supply or triple net space here in these highly desired areas of Columbus, but it’s still best to get in line now so you can reserve the best locations when these Short North, Clintonville, OSU spaces are ready for occupancy.  If you wait, the space is likely to be gone.

Some of these projects will have office space available if you’re considering a master lease of co work, incubator or accelerator space.

New OSU Retail Development For Retail or Restaurant Leasing Up Fast

OSU is getting more development than it’s seen in decades, but regarding the Lane and High and 15th and High projects, almost all of the ground floor NNN retail space is already leased.   If you want to be on campus, it’s time to get moving now.

I’m familiar with and in contact with regards to all of the projects so I would be happy to assist in your search for Columbus Ohio commercial property for sale or lease. So feel free to contact me, Scott Harris Realtor, 614-905-6614.

New Mega Development for Los Angeles In South LA

It wouldn’t be a new day without another announcement of a large new mixed use project in Los Angeles, and this project won approval already from the City of Los Angeles Planning Commission. This one is a little different given that it’s slated for South LA, just south of the 10 bordered by Washington Blvd on the north, 21st on the south, Main on the east, and Hill St on the west. South Broadway runs through the middle of the project.

The project, West Block and East Block, will encompass two full city blocks that are now mostly surface parking lots.

The West Block will keep the existing structure named the Reef, which is a 12 story building that serves as a creative space for artists and entrepreneurs. Next to it will be a new 20 story hotel with 208 rooms with typical amenities.  Also a nine story structure with 100 apartments will be built.  The West Block will have a public paseo named “The Exchange” running between Broadway and Hill with triple net Los Angeles restaurants and net lease retail space for lease.

The East Block will feature two medium rise structures with a 32 story building with 428 condos and 14 live / work spaces. The taller of the two buildings, a 35 story tower, will feature 453 apartments.  The block will also have a paseo named “The Strand” stretching from Main to Hill.

Net lease Los Angeles retail shop space for lease plus cafe and restaurant space will line Broadway, Washington, Hill and 21st.

It’s just one more amazing project for the City of Los Angeles with plenty of retail and restaurant space for lease to keep local Los Angeles commercial real estate agencies happy. So potential tenants or buyers, if you’re interested in Los Angeles commercial property for sale or lease, give me a call, Scott Harris Realtor, 310-473-4789 and we’ll see what we can do.


Los Angeles Exposition Park Mixed User – Retail Hotel and Apartments

I think I’ve started hundreds of posts with ‘large Los Angeles retail mixed use’ because I probably have. Well, here’s another one.

Across the street from the future Exposition Park soccer stadium will be a new mixed use complex named the Fig, that will include 55,000 square feet of triple net Los Angeles retail and restaurant space, 20,000 square feet of incubator / accelerator / co work space. Also planned will be a 21 story hotel and two seven story structures, one with 222 student apartments and the other with 186 mixed income apartments. 82 of the units will be moderate income.

The 21 story hotel would include 298 rooms. I haven’t heard anything yet on branding.

Developer, Spectrum Group Real Estate plans to tear down eight multiunit residential buildings on the 4 1/2 acre site.

This will be a great addition to the south side of the USC campus in Los Angeles and the newly available net lease retail / restaurant space with make Los Angeles commercial real estate agents very happy.

It’s probably a little early for lease up, but if you’re interested, feel free to contact me, Scott Harris Realtor at 310-473-4789, and I’ll see what i can do.

Los Angeles Commercial Properties for Sale or Lease

Columbus Short North UDF Site to be Rebuilt With Three Story Mixed User

Planned is a 42,000 square foot building to replace the UDF at 1st and High and the parking lot just to the south.

Elford Development has submitted plans to the Italian Village Review Board for a conceptual review for the project tonight, the 19th. No vote will be taken at this point.

The plans call for about half of the 42,000 square feet to used for office space. Net lease retail is slated for the ground floor. It’s likely to include a replacement for the UDF. The neighborhood frankly needs something like this. I don’t know about the classical music though. Maybe it will also survive.

The ground floor triple net retail will be on the southern end of the building. On the northern end will be two floors of restaurants facing the intersection of 1st and High.

There will be a small parking lot off of Pearl Street behind the building for 24 cars.

There are architectural renderings that look about like everything else that’s being built. Hopefully the Italian Village Commission will encourage Elford to spice the design up a bit.

Kaufman Doing Funky Franklinton Five Story Retail office Mixed User

Franklinton Five Story Retail office

Finally, there’s a bunch of action pending for Franklinton including this one. Planned by Brett Kaufman is 241 apartments with 50,000 square feet  of office space plus 30,000 square feet of Columbus nnn retail and restaurant  space. Plus, fitness space, both indoor and outdoor, public art, dog park, food truck court, co-working space. Also planned is a 560 space parking garage on the northwest corner of the site.

The Kaufman development will replace the one story National Office Warehouse at 500 W. Broad and replace it with the five story building designed by the architectural firm NBBJ that’s more contemporary than Kaufman’s buildings downtown . The proposal , to go before the Franklinton Area Commission tomorrow the 21st, reveals a funky and eclectic design sure to be a hit with the artistic and creative communities.

Kaufman plans numerous features that will mix public and private use of space creating a unique live / work experience for residents and office users similar to another area I work with regularly, Venice, California. This development, including the funky architecture, is very similar to the hot new and repurposed live / work space I see in the Venice Beach area for $1,000 to $3,000 per square foot and rents up around $70 per foot.

I expect this to be a catalyst that moves Franklinton long much faster than Short North. Lots of potential here.

If someone wants to take a crack at master leasing a bunch of space to create incubator / accelerator / co working space, this would be an excellent building to do it.

As always, if you’re interested in any of the retail or office space, feel free to contact me, Scott Harris Realtor, at 614-905-6614.

New Los Angeles Rams Stadium Spurring Major New Los Angeles Triple Net Retail and Residential Development

New Los Angeles Triple Net Retail and Residential Development

The new Rams stadium at Hollywood Park in Inglewood is stimulating massive new development such as 3,000 new residential units and 620,000 square feet of new nnn retail and net leased Los Angeles restaurant space.

Talk about a way to keep Los Angeles commercial real estate agents happy! It’s nice to have addition new net leased retail and restaurant space available.

The Los Angeles area hasn’t had a NFL team for 20 years, but the new Rams arena is isn’t all that’s happening at the old Hollywood Park site. The residential and retail component of the development has been in the planning stages for over a decade.  Like most projects, it was delayed by the great recession due to the lack of construction financing.

The 238 acre Hollywood Park site was acquired by developers Wilson Meany and Stockridge back in 2005, but construction didn’t begin until 2014. The Rams arena is the newest addition to the project.  The project is expected to be completed in 2023 with a possible Super Bowl in 2020.

The development and arena will be mighty cool when flying into LA at night if you’re on one of those 1,500 flight coming into LAX daily, especially the giant billboard on top of the arena. The developers are doing everything they can to see that this will be a very special welcome into Los Angeles.

It’s likely a little early to be looking for Los Angeles net lease restaurant or retail space in the development, but if you’re interested, I’ll do what I can to get the process moving. Call me, Scott Harris Realtor, 310-473-4789 for more information.

Commercial Real Estate Agent – Santa Monica, California

What’s Going to Happen to the Old Ikea Retail Site in Burbank

Big plans are underway for the old site now that the new 458,000 Square feet Ikea retail store is under construction. The new store will be the largest in the United States.  They will leave the old site at the net lease retail site at Burbank Town Center at about this time in 2017. So what’s underway for the old site?

Developer, Crown Realty and Development and CAPREF LLC have big plans: http://www.iheartburbank.com/  .  The plans are to add 765 apartments at 600 N San Fernando Blvd. and 70 condos for sale at 800 N San Fernando Blvd to the Burbank net lease retail center.  The center will also feature an open air plaza and 40,000 square feet of net retail space for lease for fresh retail tenants and maybe a farmer’s market.

No new Burbank residential multiunit housing has been permitted or built in the last 15 years, which added to the housing availability crisis. Not that it’s not the same all over Southern California.  I’ll wager that all of these new apartment and condo units will be sold or rented long before the construction is complete.

Looks like another solid project and we sure need the housing and new Burbank triple net retail space. The new net leased reatil space will sure make Los Angeles commercial real estate agents and brokers happy.

We’re still a ways off, but if you’re looking for nnn retail or restaurant space for lease, I’ll do my best to help.  Contact me, Scott Harris Realtor at 310-473-4789

25 Story Millennial Tower With 40,000 sq. ft. of Triple Net Retail Space Will Complete Columbus’ River South

Columbus developer, Arshot Investment Corporation, is proposing a 25 story mixed use ‘vertical city’ for Scioto Mile Park along the Scioto River. Arshot principal, Bill Schottenstein, say that the $35 million Scioto park is a major catalyst for the development.

Millennial Tower will incorporate retail, office, residential and entertainment uses in 400,000 square feet towering above Scioto Mile riverfront park. Important to Columbus commercial real estate agents is the 40,000 square feet of nnn triple net retail and restaurant space. We have quite a bit of supply coming online in 2017 and 2018 and it’s needed. Although we have plenty downtown, there will be another 180,000 square feet of office space.

In a press release, Bill Schottenstein said: “We have experienced a paradigmatic shift in the market. Young professionals are actively seeking ‘live-work-play’ environments,” Speaking for myself, there are some much older, still working professionals who would be interested in such an arraignment.

Schottenstien also said: “These creative minded professionals are gravitating towards urban, walkable environments that are active and transit-friendly, with open and collaborative work spaces and residences in close proximity to great parks and restaurants”.

The building will occupy the entire block of South Ludlow, Front, and West Rich and Cherry and will feature :

  • 2 floors of retail, 6 floors of office space and 10 floors of apartments and condominiums.
  • Ceiling heights of up to 18 feet with floor to ceiling glass.
  • 360-degree views of downtown and the Scioto Mile.
  • 180,000 square feet of office space composed of six, 30,000-square-foot open floorplates with possible Columbus coworking space
  • A 40,000-square-foot retail space likely to feature a grocery.
  • Parking for more than 600 vehicles.
  • 24-hour fitness center.
  • Pool and dog park.

Naming rights will be available for the building so it won’t likely remain Millennial Tower. Although that might be a dumb name in my opinion, the concept certainly isn’t. This is a very LAish progressive looking building that nails its intent of attracting and keeping a younger, more creative and collaborative work force to and in Columbus.

I hate to paraphrase The Donald, but this is a terrific project for River South and I hope that NIMBYs and area commissions don’t do terrible things to it like cut it down to about seven stories. If we’re going to have three million by 2050 as is predicted, we need more density downtown and that means building taller.

It’s probably a longs ways out to inquire about leasing retail or office space, but contact me, Scott Harris Realtor at 614-905-6614 if you want to get started.  Speaking of that, who would be willing to master lease a floor to create some new coworking / incubator space in the tower?

Gallery Approval of Ohio State University Retail and Residential Development at 16th and High

The first major segment of the long awaited renewal of the east side of High Street across from the OSU main campus entrance received approval from the University Area Review Board. The new development encompass the entire block bordered by 16th on the south and 17th on the north with Pearl Street on the east and will require the demolition of eight existing buildings. The building that housed the former Bernie’s Bagels & Deli and Johnny Go’s House of Music (The Wellington Building) will be one of them. The Sigma Nu building at 22 East 16th is another.

The much revised plan got unanimous approval of the University Area Review Board and board members were satisfied with the architectural changes made over many months of meetings.

The redeveloped block will include 50,000 square feet of net lease retail and restaurant space, which will make potential tenants who have been looking for space for years and Columbus commercial real estate agents very happy. We’ve had virtually nothing new come on the market for years in the OSU retail and restaurant areas.

There will be 164 new apartments with a total of 448 new beds and a 171 space parking garage.

There will be existing tenants who will want to relocate into the new building so no one is certain at this time how much truly new space will be available for additional new net lease retail and restaurant tenants. I’m staying closely in touch with all involved so if you have interest, give me, Scott Harris Realtor a call at 614-905-6614.

I expect the process to be quite competitive so it’s best to start early. Occupancy will be the start of fall semester 2018 so you have plenty of time to prepare, but the triple net retail and restaurant spaces will long be leased up. So again, start now.Columbus OSU retail restaurant development

Residential and Retail on 1,000 Acres at Evans Farm in Delaware County

Residential and Net Lease Retail

A New Urbanism concept is set to rise on 1,000 acres in Orange and Berlin Township. While not yet formally approved in its entirety by the Orange Township trustees, all three have expressed strong interest in the project.  The rezoning from agriculture to commercial has been approved.

The new community will begin just east of Olentangy High School and stretch all the way to Alum Creek State Park on the east and eventually all the way north to Berlin Township. The 450 acres in Berlin Township could be a few years off until construction begins.

The goal of the family who owned the large farm was a vision to create a community very different than anything else in Central Ohio using the concept of the New Urbanism movement. New Urbanism calls for walkable, self-contained communities with homes set close to the street, including large usable front porches, walkable local retail, restaurants and services.  Garages will be side entry or from the rear.

This rather fantastic concept got started about six years ago when the family who owned the farm approached developers, Dan Griffin and Tony Eyerman, about doing something really unique on the land versus just more single family housing. The family’s decades long goal was to create a real community center for Orange Township simliar to historic Uptown Westerville, Old Worthington, Grandview, etc.  The project will be named Orange township Town Center.

There will be small local retail, cafes, small restaurants, bakeries and a YMCA, but no big box stores or large anything. Also planned is a new elementary school to be part of the Olentangy School District.



This is probably still a little early for NNN, triple net retail lease up, but if you’re interested, give me a call, Scott Harris Realtor 614-905-6614.  It’s unlikely that we’ll see any triple net nnn properties for sale out of this one.

Northgate Retail Rezoning for 250 Acres in Sunbury Approved

Retail Rezoning

On Wednesday, April 6th, the Sunbury Village Council unanimously approved rezoning for 250 acres as part of the 1000 acre retail, residential, office mixed use development Northgate Centre from agricultural to commercial.

The rezoning decision was passed as an emergency. Many residents expressed concern at the measure passing as an emergency, but village attorney, David Brehm said that removing the emergency clause was not an option.

Reason being that Ohio DOT had no plans for modifying or improving the existing interchange at I-71 and US Route 36 / 37, leaving a new interchange just south of the existing interchange as the only option. Ohio DOT had long planned an additional interchange somewhere from Big Walnut Road up to just south of the Route 36 interchange.

The village attorney said passing the ordinance as an emergency measure would help facilitate the process of approving the new interchange and without the development there wouldn’t be the funding to build the interchange and without the interchange there wouldn’t be the development.

The site now rezoned will become part of the giant 1,000 acre Northgate Centre mixed use development to include triple net retail, net lease restaurants, car dealerships, office, warehouse and and athletic fields and faculty.

The Northgate web site states that the development will encompass.

  • 1,036 acres of a mixed use commercial site.
  • 1,500,000 to 3,000,000 sq ft of retail and office use. 300 acres of warehouse/distribution development providing up to 10 million sq ft of warehouse distribution space.
  • 6-8 hotels with approximately 600-1000 rooms.
  • Total payroll of retail, office, and hotel use: $76 million.
  • Sales tax revenue of over $58 million per year.
  • Destination Auto Mall with 4 to 6 new car dealerships.
  • 60 acres outlet/lifestyle center, 400,000 sq ft, with over 5 million visitors per year, creating an excess of $250 million in Sales yearly.
  • COTA and DATA Drop off sites to provide bus transportation within Franklin and Delaware County.

Preliminary lease up will happen far ahead of anything ready for occupancy so if you’re interested in any of this Delaware County Ohio / Sunbury NNN, triple net retail space, feel free to contact me, Scott Harris Realtor at 614-905-6614

Hamilton Rd and 161 – Hamilton Quarter

After 10+ years of round and round with the Army Corps of Engineers regarding wetlands then the 2008 crash, Hamilton Quarter will be the name.

In far northeast Columbus and just east of New Albany on 320 acres of farmland will be Hamilton Quarter with 700,000 square feet of office, one million square feet of nnn, triple net retail, 800 multifamily residences and 130 senior residences. The project is a collaboration of Casto, The Daimler Group and The New Albany Company.

The project includes the long planned rerouting of Hamilton Road. From looking at the site map on the Casto site, I’m not sure what is happening with Dublin Granville Road whether it’s being routed around the project or right through it. As can be seen on the site map, the Columbus infatuation with roundabouts continues.

With most of the residential on development on the north side of 161, I’m not sure how they call this project ‘walkable’ and with most all of the big box retailers already on Hamilton Road just south of this project, and Easton not far away, what they going to do with one million square feet of retail.

The Hamilton Road reroute should be complete by early 2017 and ground breaking late this year. Preliminary lease up will begin soon so If you have interest in retail property for sale or lease in Columbus Ohio please feel free to contact me, Scott Harris, your NNN real estate agent, 614-905-6614

Columbus Short North’s Bollinger Tower Sold For Redevelopment

The Columbus Metropolitan Housing Authority just sold the Short North 11 story Bollinger Tower to Schiff Capital group for redevelopment into what’s likely to be hotel. Bollinger sold for $14 million. The building currently houses 100 residents in 100 units.

The hotel was constructed in 1984 for low income senior housing and is in otherwise in too decent a condition to tear down. Plus, if they did the NIMBYs would likely prevent them from building something this tall again. I think they’re far ahead to redevelop what’s already there.

The City of Columbus wanted to divest itself of high maintenance real estate and invest directly in the tenants by providing housing vouchers so the tenants can live where they choose. Given that the building housed low income elderly, I’m concerned about major disruption to lives where they might not be able to fend for themselves.

Columbus Underground reported that “Selling Bollinger Tower fulfills our long-term strategy to expand CMHA’s capacity to assist more residents,” stated CMHA president and CEO Charles Hillman. “This transaction furthers our plan to divest ourselves of high-maintenance real estate in order to invest directly in people’s lives. Residents will receive portable housing vouchers enabling them to live in apartments of their choice in neighborhoods of their choice.”

And “I certainly understand how the perception of gentrification is a concern,” said CMHA COO Bryan Brown. “Do we have an obligation to provide low-income housing in a high-cost neighborhood? Sure. But we also want to expand our mission and help serve three times as many residents as we currently do at Bollinger. And if you think about the need for more hotel capacity, which provides economic development for our city, converting Bollinger to a hotel is a big plus for the city as a whole. On balance, it’s a big win and I hope people see it that way.”

There’s no decision yet regarding ground floor net lease retail or restaurant space, Frankly, that’s what Columbus commercial real estate agents want to learn about, including me. If you’re interested in retail or restaurant space, I’ll do my best to get answers. Contact me, Scott Harris, Realtor, 614-905-6614

Searching For a Single Tenant, Triple Net Retail, Credit Tenant 1031 Upleg?

There is a real bumper crop of new opportunities on the market right now for net leased retail 1031 uplegs. These are all new opportunities that have come on market in the last week.

It’s not unusual to see many triple net retail single tenant properties come on the market at this time of the year, but this year it’s unusually strong. Plus, it’s very high quality net lease properties as we’re talking Walmart, Walgreens, CVS, all credit tenants, S&P BBB or above.

Are you in your 45 day identification period? Have you closed your down leg yet?  If you have a 1031 downleg about to close and you need a replacement property, now is a great time.

If you have any questions, you can reach me, Scott Harris, at 310-473-4789 or 614-905-6614

Downtown Los Angeles South Park Car Wash to be 60 Story Mixed Use Tower

Los Angeles commercial real estate agentsLos Angeles South Park | 60 Story Mixed Use Tower

We’ve been hearing rumors for a very long time, and now that plans have been filed with the City of Los Angeles, we’re seeing the first illustrations of the planned 60 story mixed use monster. It’s to be built on the old car wash site across from LA Live and will include hotel, residential condos, office, retail and restaurants.

Although the building looks so thin that a good wind could blow it over, it will house 374 residential units, 373 hotel rooms, 33,000 square feet of office space and more than 65,000 square feet of downtown Los Angeles retail and restaurant space. Could there be a floor for some Los Angeles coworking space? Once again, making Los Angeles commercial real estate agents very happy to have new inventory available.

Car wash owner, Robert Bush, sold for $25 million in 2014 to developer Ben Neman who was the buyer and is the developer. Car wash owner paid $515,000 for the site back in the 80s.

Plans were just filed with the City of Los Angeles by architectural firm Nardi Associates.  Illustrations show how this is going to look.  Nardi describes it as a giant urban tree with its diagonal grid like design complete with open air atrium, LED signs and live plantings.

Preliminary lease up will begin as soon as they get final approval so if you’re interested in the retail or restaurant space, feel free to give me a call, Scott Harris Realtor, 310-473-4789.


Los Angeles Apartment Occupancy Rates Driving Rent Increases

Los Angeles commercial real estate agentNot that it isn’t obvious enough already, but take a look at the article that I found today in Curb LA regarding Los Angeles metro apartment rent increases versus vacancy rates.

This is a big boom to Los Angeles commercial real estate agents and landlords and not so good for tenants.

Citywide, rents are up an average of 7.8% over last year to an average of $1,873 per month.  Northeast San Fernando Valley prices are up 15.1%.   Los Angeles single family homes prices have increased 5.2% and incomes 2.9%.

Take a look at vacancy rates.  That explains everything.  When you see vacancy rates down to the 1% and 2% range, the sky’s the limit on rent increases.

In spite of all the new multiunit residential construction, and there’s a bunch, we need more and denser.   Los Angeles has over 15,000 units under construction right now with half of all new supply is coming online downtown.  Notice that downtown has the second highest vacancy rates and one of the slower rates of rent growth so there’s obviously a connection there.  We’re going to need to out build the population increases to keep a lid on rents.

Great thing is that all of the new mixed use high rises that are going downtown, and along the Wilshire corridor, will include street level net leased retail and that’s where I come in.  Los Angeles and Santa Monica commercial realtors are happy folks right now.


As always, if anyone is looking for triple net retail or restaurant space to buy or lease, feel free to contact me, Scott Harris at 310-473-4789.

Columbus Multiunit Residential Market Ranked 10th Nationally

columbus commercial realtorA  report by All Property Management http://www.allpropertymanagement.com/ , who is the largest group of property management companies in the United States,  ranked Columbus and Central Ohio as the best market for landlords in the Midwest, and the 10th best in the country.

Columbus commercial real estate agents, me included, couldn’t be happier at the new level of activity and the net leased retail opportunities we’ll see in the future.  The development in downtown is all mixed use so that means ground floor triple net retail.

Columbus area developers have added thousands of units over the last few years, which is driving much additional mixed use, triple net retail and restaurant space for lease in the Columbus area.  We sure need it.

In spite of the new apartment supply coming online,  there’s still a drop in Columbus vacancy rates into the range of 5.5%.  Plus the Columbus multiunit market has seen a 25% rise in rents over the last four years and a 9.9% rise in the last year.   It can’t get much better than this.

From personal experience, however, my advice to an investor, especially an out of town buyer would be to stick to class A and good class B units and complexes.  Tenants here in class C buildings can be a major nightmare. If you buy class C you need to be local.

If you’re interested in becoming an owner, contact your favorite Columbus commercial Realtor or commercial real estate agent.  I’m happy to help.  Contact me, Scott Harris, Realtor at 614-905-6614

1031 Buyer Requirement – Triple Net Retail or Absolute Net Retail, National Credit, Single Tenant – $1.3 to $2.6 Million

California exchanger in day 4 of 45 day identification period looking for triple net retail properties for sale or absolute net retail investment.  $1.3 mil needs to be replaced to $2.6 mil under the 200% 1031 rule.

Must be credit tenant, preferably single tenant, NNN, triple net leased retail with at least seven years unexpired left on net lease.   Corporate net leased retail properties for sale such as single tenant 7 Eleven, Circle K, Get Go, Turkey Hill, KFC, Chipotle, Panera Bread, Taco Bell, Walgreen, CVS, Tractor Supply, Auto Zone, NAPA, Advanced Auto, etc. is fine.  Fast food and fast casual fine if corporate lease.

Again, relinquished property closed four days ago the clock is running and will have 41 days left in the 1031 45 day identification period.

California, Los Angeles or Santa Monica commercial real estate agent  / broker /principal with property  that meets above requirement call me, Scott Harris at 310-473-4789, 614-905-6614 or better yet, email to scottharrisrealtor@gmail.com.

Retail Lease Basics

I get questions from both proprietors starting a new concept and looking for a new space to lease and investment buyers looking for net leased retail properties to purchase so I thought it would be a good time to review the basic lease types. I’m certain that most Columbus commercial real estate agents get the same exact questions

The corporate backed, investment grade, single tenant, triple net retail lease has been one of the hottest segments of the market over the last four or five years. So hot in fact that cap rates have plummeted to record lows in just about every market in the country.   Los Angeles commercial real estate agents, buyers and tenants have seen cap rate plummet to sub 4%.   Columbus commercial real estate agents in what little we have to sell here that’s newer, single tenant, net leased, credit tenant are seeing asking caps in low to mid 5% range.

First, what does investment grade or national credit really mean when coupled with single tenant, triple net ? The commercial real estate flavor du jour is a retail, single tenant, single parcel with national credit – meaning S&P BBB or the Moody’s equivalent, Baa3 or higher, long, triple net (NNN) lease. What they are really asking for is an absolute net or bond lease where there are no landlord day to day responsibilities.

But what do these acronyms really mean – NN, double net, NNN, triple net, bond lease, absolute net, modified gross and etc.? Regardless of what the seller or listing agent labels the lease, it is imperative to read the lease thoroughly at the earliest opportunity and have a real estate attorney licensed in the state where the property is located, review the lease. Remember, the devil’s in the details. Also keep in mind that the perfect lease doesn’t exist.

Back to the flavor du jour that I mentioned in the third paragraph – approach the analysis of a triple net leased investment with the idea that the buyer is purchasing the lease rather than the building and land.

Because definition of triple net leases differs, be sure you understand what’s in and what’s not in the lease. Get your hands on the lease as early in the process as possible to save time and money later. If you can get it prior to making the offer or in the offer counter offer stage, that’s even better. Best to find that one paragraph that knocks the property out of contention before you start spending money on due diligence such as inspections, surveys and appraisals.

A net lease generally refers to an arrangement where the tenant pays all or almost all of the property’s operating costs in addition to rent. There are a number of gradations of a net lease so I’ll cover the broad categories from strongest to weakest.

Bond or Absolute Net Lease. The tenant is responsible for everything – all operating expenses, maintenance, repairs and replacements for the building and site without limitation without limitation.

Triple Net (NNN) Lease. These leases follow the above except that capital expenditures, especially toward the end of the lease, are the landlord’s responsibility. You commonly will see leases that are labeled triple net are in fact double net in that the landlord is responsible for roof and structure. As I’ve said above a few times, read the lease and have a real estate attorney licensed in the state where the property is located review the lease.

Double Net (NN) Lease. Follows the above except that landlord is responsible for structural components of the building such as roof and load bearing walls, but also could include parking lot, plumbing and electrical.

Modified Gross Lease. The tenant pays its own utilities, interior maintenance, janitorial, small repairs and insurance and the landlord pays everything else.