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Commercial property or retail space help needed, preferably in the San Antonio

1,282 Views | 12 Replies | Last: 5 yr ago by aggiediehard10
aggiediehard10
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AG
Howdy:

My wife and I started started shopping around for a strip mall retail space. I called one of the property managers today and I told him I needed about 1500 sq ft. He started quoting the numbers This is when I realized I was in unfamiliar territory. I would appreciate it very much if someone would be willing to give me a few pointers, or point me in the right direction to find more information.

First, he mentioned that the owners of the space also own the Pizza Hut in the center. It is a new strip mall and the other four spaces are empty. He asked me what type of business we were planning to open, and when I told him, he said, ok, we can move forward, because the owners are being very selective regarding the different types of businesses they are allowing in that location. Then he gave me this quote:

$26.00 per square foot, plus $9.00 a sq ft for NNN. and $25.00 sq ft for the buildout.

When I told him I was looking at several locations and I would get back to him, he told me all of the quotes are high, and negotiable.

I want to make a counter offer, but where can I find the best resources to determine FMV for the lease, NNN's, and build out cost?

I appreciate any pointers, tips, or informations you can give me, thanks.

Rich



AgPT06
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Get a realtor who does commercial in that area. Commercial is much harder to do on your own because of so many factors. Traffic numbers, future construction, other tenants in the center, parking spaces, length of lease, what requirements do they have for signage (we looked at some places where signage was going to cost $1000 and others it was going to cost $8000 to stay within their requirements), etc etc all factor in and if you are that green on the topic, get a professional to help. They get paid by the property owner, you dont have to pay them.

jt2hunt
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They usually have build out specs that tend to eat up most of the build out allowance. Need to k ow all this in order to estimate the build out.
aggiediehard10
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Thank both of your very much, I appreciate the feedback. I'll be calling one of our fellow Aggies in the in the morning. Mucho Gracias.

Rich
evan_aggie
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I'll PM you with more info in a few hours.
SLF11
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Rich,

I'm a commercial broker here in SA with one of the bigger firms. Happy to chat and help you out on the lease/location if interested - it can get complex in a hurry.

Is there a good way to contact you?

Thanks
Scott
aggiejumper
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PM sent

Make sure to use a retail specialty broker. SA is low on quality inventory and most good vacancies never hit the "open market" and are back filled quietly between brokers.
dc509
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Use a tenant rep. Going direct is a good way to get hosed. I would message SLF if he's at one of the larger brokerage shops. A tenant rep from a reputable firm will get you the best deal. It's not just the lease amount. It's caps on maintenance responsibility, parking spots, signage, etc. Also, it's not outside the realm of possibility that leasing agents give the best deals to people who in a position to bring them more tenants as opposed to a person going direct in a one off.
aggiejumper
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You hit the nail on the head. Big firm/little firm, doesn't matter much anymore, the broker and their connections are the key.

FYI, I'm one of the few sole tenant rep retail brokers in town.
dc509
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100%. Didn't mean to seem to be directing business away.
aggiejumper
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All good, I'm not pitching business, the original poster can reach out to me if they'd like. There are other great brokers in SA but only a few that specialize in what the original poster is requesting.

My goal in posting on this thread is to make sure the original poster has the best information to make an educated decision. In our business it's truly the 80/20 rule and trending toward 85/15 or more as technology allows us to do more work per hour and keep tabs on more metrics at once.
dcAg
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Realtor that does commercial? You really think that is good advice? WTF?
AgPT06
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dcAg said:

Realtor that does commercial? You really think that is good advice? WTF?
My terminology of a "realtor that does commercial" is probably poor, not in the real estate business. A broker? A firm? The point was a commercial real estate entity that can help broker the deal is needed and not just calling random landlords with a sign out and hoping to get the best deal.
aggiediehard10
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Sorry for being so late getting back.

All I can say is WOW! It's so awesome to be an Aggie and part of the World Wide Aggie Network. You guys were fantastic! After my post, I received two emails from Instructors at the Mays School of Real Estate and three emails from people on this board. I have been in contact with all of them and I have gained a wealth of knowledge.

It really is amazing. Not only did I receive valuable insider information, I received contact information to some key players in the San Antonio Market. Two have offered significant contributions as well as opportunities to meet one on one.

In regards to the people who have posted from San Antonio, I tried to PM some of you, but some of your accounts did not allow PM's. If you didn't get a reply, that may be the cause, but thank you for helping. I will leave my phone number at the bottom if you would like to contact me.

Someone mentioned, "I am not trying to push my properties or advertise my services." Why not? You are offering a service which I am asking about. Especially, if you are on the inside of the industry and I am a potential customer looking for site locations for my company. Our future plans include the addition of five more properties in the area, so please if you have inventory, get in touch. As a Diehard Aggie (Yes OPs name checks out), I still believe Aggies Do Business with Aggies, because it is money well spent.

You guy's are the best and I can't thank you enough for your help. Gig'em!

Richard 830-765-0629
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