Just Sold: Mount Dora Retail Strip in Mount Dora, FL

Ground + Space announced today the sale of the Mount Dora Retail Strip, a multi-tenant property in Mount Dora, Florida. Mount Dora Retail Strip is a 6,912-square-foot retail site that features three tenants: Hand & Stone Massage and Facial Spa, Marco’s Pizza and Kay Jewelers. Ground + Space Principal Michael Zimmerman exclusively marketed the property and represented the seller, a Florida-based development company. The property sold within one percent of the original asking price for approximately $3.26 million.

This multi-tenant property is brand-new construction along U.S. Highway 441 within a larger development that includes ALDI and Panera Bread. The three tenants all have new NN leases with a mix of corporate and franchise guarantees. All three leases feature scheduled rental increases and options to renew. In addition, the tenants reimburse the landlord for expenses relating to roof, structure and parking lot maintenance.

The property benefits from its highly visible location across from both Walmart and Target, along with high traffic counts (over 41,500 cars pass the site daily). Mount Dora itself is located within Orlando’s sprawling metropolitan area, which boasts a population of more than 2.3 million. Mount Dora is less than one hour from downtown Orlando and the area’s world-class tourist attractions, including Walt Disney World, Universal Studios and SeaWorld.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. Ground + Space is rooted in more than 20 years of experience aimed at providing the best data, relationships and success rates in the business. Interested in commercial real estate investment? Contact us today to find out more about our current listings!


Just Sold: Mattress Firm in Pittsburgh, PA

Ground + Space announced today the sale of a Mattress Firm property in Pittsburgh, Pennsylvania. This 4,000-square-foot retail site is located at a visible corner location along McKnight Road, the prominent, primary retail corridor in this market. The property sold for approximately $1.9 million in an all-cash transaction. This is the 21st Mattress Firm property sold by Michael Zimmerman, both freestanding and within strip centers. Ground + Space Principal Michael Zimmerman exclusively marketed the property and represented the seller. The property was listed in conjunction with Pennsylvania broker Aaron Savin of ECHO Real Estate Services Company.

Built in 2013, this Mattress Firm property features a NN corporate-guaranteed lease with minimal landlord responsibilities and an additional option to renew the lease for five years. The lease’s rental rates are firmly in line with market rents along McKnight road, which are currently $36 per square foot of retail space. The property benefits from its location adjacent to The Block Northway. Additionally, the site benefits from synergies with several nearby high-end furnishing retailers, including At Home, Kirkland’s and The Container Store. The property also has easy access to downtown Pittsburgh and the 2.3 million people who call the area home.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman and team have curated a brokerage firm and investment sales platform focused on boutique amenities and down-to-earth service. Ground + Space is rooted in more than 20 years of experience aimed at providing the best data, relationships and success rates in the business. Interested in commercial real estate investment? Contact us today to find out more about our current listings!


What is a Double Net Lease?

A net lease is a popular form of a commercial real estate lease where the tenant assumes certain financial responsibilities in addition to the pre-determined rental rate. Different variations of net leases exist to accommodate specific building expenses–single, double and triple net leases. The biggest difference between these net lease variations is how the additional expenses are divided between the landlord and the tenant. Here is everything you should know about double net leases.

What are the features of a double net lease?

In a double net lease, the tenant agrees to pay the property taxes and insurance fees in addition to the pre-determined rental rate. A double net lease gives the tenant more financial responsibility than a single net lease, but also requires the landlord to handle repairs and pay any necessary maintenance fees. In a multi-tenant building, the property taxes and premiums for property insurance can be split on a pro rata basis between the other tenants renting within the building.

What are the advantages of a double net lease?

Landlords may use a double net lease because it shifts most of the financial responsibility, and thus much of the organizational pressure and stress that comes with managing and paying multiple property expenses. However, as landlords remain responsible for the upkeep and maintenance of the property, they still assume a certain level of control over how the space is used and maintained. Additionally, tenants may opt for a double net lease because these contracts typically have a lower rental rate than a single net lease and less financial management than a triple net lease.

What are the considerations of a double net lease?

While a double net lease limits the financial risk for landlords, property taxes and insurance fees typically still pass through them to ensure these important expenses are paid correctly and in a timely manner. Accordingly, this can complicate this process instead of simplifying it. Additionally, tenants need to consider the property taxes and insurance fees and understand that the responsibility of these additional expenses may outweigh the lower rates in rent in some cases.

Interested in commercial real estate investment? Ground + Space is a leading commercial real estate brokerage firm that specializes in single-tenant and retail NNN investments. Contact us today to find out more about our current listings!

 


What is a Net Lease?

Commercial real estate leases fall primarily into two categories—either a net lease or a gross lease. The most common type of lease in commercial real estate is a net lease because it relieves landlords of serious financial responsibilities and gives tenants more control over how much they’re spending on certain services. But what exactly Is a net lease? Read on to find out everything you need to know about net leases in commercial real estate.

Features of a Net Lease

On top of the pre-established based rent, a net lease requires the tenant to assume responsibility for at least one, if not all, of the additional operating expenses associated with the property. Three different types of leases exist to determine which portion of these additional expenses are to be paid for by the tenant. A single net lease requires the tenant to pay both the rent and the property tax on the property, while a double net lease requires the tenant to pay the rent, the property taxes and property insurance for the space. A triple net lease requires the tenant to pay all of the expenses associated with the property, including the rent, property taxes, insurance, maintenance costs and repairs.

Advantages of a Net Lease

A net lease is a common type of lease in commercial real estate because it benefits both landlords and tenants. For landlords, it alleviates significant financial responsibilities of owning and operating the property. Net leases streamline the process of paying insurance and property taxes and make paying these expenses less complicated and stressful for the landlords. In addition, net leases give landlords a predictable source of income because they eliminate unexpected expenses and alleviate the financial responsibility of property taxes and insurance, which typically fluctuate over time.

Tenants experience significant benefits of net leases as well. Because tenants assume the responsibilities of additional expenses, net leases generally result in lower rental rates of the actual property. Additionally, net leases give tenants more property control because they are held accountable for at least a portion, if not all, of the property expenses. Accordingly, a considerable amount of property control is allotted to the tenant. Renting under a net lease gives tenants a closer experience of property-owning than a typical renter.

Considerations of a Net Lease

Net leases also can have some drawbacks if the building or property is not properly maintained and managed. For tenants, the maintenance costs might outweigh the lower cost in rent if there are constant major repairs. Likewise, most landlords prefer insurance and tax payments to pass through them to ensure the amount is correct and on time, which at times may complicate the process more than simplify it.

Interested in commercial real estate investment? Ground + Space is a leading commercial real estate brokerage firm that specializes in single-tenant and retail NNN investments. Contact us today to find out more about our current listings!


Single, Double and Triple Net Leases: What’s the Difference?

A net lease is a contract in which the tenant agrees to pay a predetermined price for rent as well as specified additional expenses associated with the property. These additional expenses can include property taxes, insurance, maintenance and repairs. How do you determine which of these costs the tenant is responsible for paying? Single, double and triple net leases exist to clarify which of these additional expenses are the tenant’s responsibility. Read on to discover the difference between single, double and triple net leases.

Single Net Lease

Single net leases are the least common type of net lease. In a single net lease, the tenant is responsible for paying all or a portion of the property taxes on the property in addition to the pre-established rental rate. While this financial responsibility shifts from the landlord to the tenant, most landlords still prefer the payment to pass through them to ensure the amount is correct and on time. Under a single net lease, the tenant assumes the least amount of financial responsibility for the space as possible within the limits of a net lease.

Double Net Lease

Under a double net lease, the tenant is now responsible for paying the property taxes and insurance for the space in addition to the established rental rate. All other expenses, such as maintenance and repairs, remain the landlord’s responsibility. Double net leases are particularly common in commercial real estate, and in most cases, landlords of larger commercial developments charge taxes and insurance expenses proportionally to the size of the leased space.

Triple Net Lease

A triple net lease removes the landlord from most if not all of the financial responsibility associated with the property. In a triple net lease, the tenant pays taxes, insurance, maintenance and repairs in addition to the rent. Triple net leases are commonly used for long-term periods (ten years or more) in freestanding commercial buildings leased to one tenant. Because this leasing method shifts the majority of additional expenses to the tenant, triple net leases typically have a lower rental rate.

Interested in commercial real estate investment? Ground + Space is a leading commercial real estate brokerage firm that specializes in single-tenant and retail NNN investments. Contact us today to find out more about our current listings!