Retail is constantly changing, and so is the commercial retail real estate market. Although overall transaction numbers have been slightly down from years previous during the first three quarters of 2019, quality investments are still up for grabs. Savvy retail investors are gravitating towards investments with safer outlooks and focusing on smaller transactions. Even though private investors have historically focused more on single-tenant assets, a great many of those same investors are now looking to expand their portfolios by acquiring multi-tenant properties.
Benefits of a Multi-Tenant Investment
The addition of a multi-tenant commercial real estate asset to an investment portfolio can help lead to better yields and diversification within a single investment property. A multi-tenant property can help mitigate the risk of future tenant vacancies by sometimes offering shorter rental terms that can be adjusted and replaced as needed. Also, when a suitable, complementary mix of tenants are brought together within the same center, those retailers can leverage each other to help drive sales and foot traffic. This creates retailer dedication to the site and oftentimes increases the chances of the longevity of a tenant’s presence in a market.
Finding the “Right” Multi-Tenant Property
Not all multi-tenant properties are created equally, so it’s important to consider the strength of each individual tenant when making investment decisions. A strong, varied tenant mix is vital to the success of the investment as well as the property’s long-term value. Right now, investments that are getting the most attention feature service-based businesses that offer Internet-proof tenancy via services that can’t be purchased online. Grocery-anchored centers that feature strong brands like Publix, ALDI or Wegmans (among others) are also at the top of investors’ lists.
Ground + Space Multi-Tenant Listings
We have three multi-tenant properties currently on the market that are ideal for any investor. All our listings feature a solid mix of national and regional tenants with a focus on service-based businesses. Each property is in the state of Florida, which has no state income tax.
Orange City Shoppes: The property benefits from a prominent, signalized corner location within Orange City’s main retail sector. The multi-tenant site is an outparcel to Target and is across from a Publix-anchored shopping center. The new, corporate-guaranteed NN leases for all three tenants provide for a quality investment with minimal landlord responsibilities. Additionally, each lease features built-in base term rental increases and options to renew. View more information about this property or download an Offering Memorandum by clicking here.
Shoppes at Eustis Village: This multi-tenant site features prominent signage and shares a signalized corner intersection with the Eustis Village Publix retail center. The property is comprised of three separate buildings that feature an ideal mix of national and regional tenants. (The seller recently spent over $100,000 to separate the property into three individual parcels.) The NNN leases provide for a quality investment with no landlord responsibilities. Additionally, there is a significant investor upside potential at 100 percent occupancy. View more information about this property or download an Offering Memorandum by clicking here.
Shoppes at Solaris: The site is located along busy Gulf to Bay Boulevard and is adjacent to Clearwater Mall and other national retailers like Target and Marshalls. Shoppes at Solaris also benefits from its proximity to Solaris Key Apartments, a four-story luxury apartment community in Clearwater. The multi-tenant property is now fully leased to quality tenants: Caribou Coffee & Einstein Bros. Bagels, Tijuana Flats and Curry Leaves Express. Each NN lease features varied lease terms and multiple options to renew. View more information about this property or download an Offering Memorandum by clicking here.
Interested in learning more about our multi-tenant property offerings? Ground + Space is a leading commercial real estate brokerage firm based in North Carolina that specializes in single-tenant and retail NNN investments. Contact us today to find out more about our current listings or sign up for our mailing list to stay updated on the latest commercial real estate news and offerings.