Loan Relief and Delinquency in the Days of COVID-19

The effects of COVID-19 are being felt by lenders hoping to collect loan payments as government relief programs near their expiration dates. Lenders began allowing borrowers postpone billions of dollars in loan payments back in March. Many lenders adopted this practice at the request of government regulators and lawmakers who placed moratoriums on both foreclosures and evictions. As forbearance requests from government-controlled mortgage finance companies end, the mounting number of distressed loans is expected to grow.

Loan Delinquency Rates on the Rise

In mid-June, bond rating agencies reported the greatest month-to-month increase in commercial mortgage-backed security (CMBS) loan delinquencies in at least three years. The CMBS loan delinquency currently totals around $36 billion. That number is five times higher than it was before the coronavirus pandemic began sweeping through major metropolitan markets in February.

The Kroll Bond Rating Agency (KBRA) reported another $60 billion on servicers’ watchlists. These loans include those that have experienced the loss of a major tenant and loans that have near-term maturity dates on which borrowers may not have the option of refinancing. On the commercial real estate front, Fitch Ratings recently released current and April delinquency rates. Except for multi-family, all other commercial property types have seen an increase in delinquency rates. Retail property delinquency rates have increased by 3.82 percent, and mixed-use property delinquency rates have increased by just under one percent.

What Happens Next?

The effects of the massive coronavirus relief measures are expected to create operational challenges for banks. According to Fitch Ratings, the asset quality for many U.S. banks is expected to deteriorate as a result of the COVID-19 pandemic. However, it will likely take a few quarters before the true impact to materialize on bank financial statements.

The economy’s overall recovery—and the ability for borrowers to make timely loan payments—will depend on the ability of states to adequately contain COVID-19. A number of states that opted to “open early” are now seeing an increase in the number of coronavirus cases as a result of community spread. These states remained mostly unaffected during the so-called “first wave” of COVID-19. As the number of active cases begins to decline in areas like New York City, COVID-19 infections are on the rise in states like Florida, Arizona, California and the Carolinas.

Navigating These Uncertain Times

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. We are committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The IRS 1031 tax deadline is fast approaching, so please contact one of our brokers for specialized guidance during this time.

Stay Healthy and Safe

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.


Retail Closures and Other STNL News

Many retailers that found themselves struggling in a pre-coronavirus world dominated by increased e-commerce adoption rates have begun to restructure their business models or close their doors for good. Current research shows that between 20,000 and 25,000 storefronts are expected to shutter forever by the end of 2020. This is a dramatic increase compared to the 9,300 store closures reported in 2019. At least 15 major retailers have filed for some form of bankruptcy protection.

What retailers are closing their doors and filing for bankruptcy? Are any retailers expanding their footprints amidst the nationwide pandemic? Let’s take a look.

Store Closures and Bankruptcies

As of early June, at least 4,000 storefronts are in the processing of closing. More than half of those can be accounted for by six major retailers, including: Pier 1, Tuesday Morning, GNC and JCPenney. Other retailers that have either filed for bankruptcy or announced store closures include: Papyrus, CMX Cinemas, Starbucks, Victoria’s Secret, J.Crew, Neiman Marcus, Macy’s, Payless, Dress Barn and Gymboree.

Pier 1 filed for bankruptcy in early February. Three months later, the company is ceasing all its retail operations and expects to close all of its remaining stores by October 2020. The company is currently working to liquidate the remainder of its assets. Discount home goods retailer Tuesday Morning joined Pier 1 in filing for bankruptcy in late May. The Dallas-based chain will permanently close at least 230 of its nearly 700 stores in the United States this summer. During the Chapter 11 bankruptcy process, the retailer hopes to renegotiate many of its leases so it can focus on improving product offerings in its remaining high-performing stores.

The health and nutrition chain GNC will close at least 900 of its retail locations by the end of 2020. CEO Ken Martindale pointed to decreasing mall traffic as one of the many reasons the company has decided to significantly reduce its footprint. GNC plans to reduce its mall count by nearly half. (Currently, mall locations make up about 23 percent of GNC’s retail footprint.) Another former mall staple—the 118-year-old company JCPenney—filed for bankruptcy in early May. The coronavirus pandemic had a dramatic effect on the department store chain, resulting in major decreases in store sales. The company hopes to continue doing business even while closing a at least 154 of its remaining 846 stores.

Some Good News

Although few retailers are focusing on expansion plans during the midst of this nationwide pandemic, some notable brands—most in the quick-service restaurant (QSR) sector—are hiring more workers. Fast-food chain Dunkin’ announced its plan to hire at least 25,000 new employees nationwide. Taco Bell made a similar announcement in late May as it unveiled its plan to hire 30,000 workers this summer.

Because of the relative strength of QSR assets, they are at the top of investors’ lists as many in 1031 exchanges prepare for the July 15 IRS tax deadline. Single-tenant, net leased assets are still trading even as investments in department stores, strip centers and other non-essential retailers have been put on hold. Retail assets valued between $1 million and $5 million that feature essential tenants like Dollar General, McDonald’s, 7-Eleven and Wawa are doing well, although they are being sold at higher cap rates.

Navigating These Uncertain Times

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. We are committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

Stay Healthy and Safe

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.


Retailers Adjust to Changing Consumer Shopping Habits

As states across the country begin the process of reopening their respective economies, retailers are coming to terms with the financial and social impacts of COVID-19 on sales and consumer shopping habits.

Retail Sales Slowdown

The month of April saw an estimated $150 billion loss in retail sales. Those businesses and retailers deemed “essential” during the pandemic—think supermarkets, pharmacies and big-box stores like Target and Walmart—fared better than their non-essential counterparts. The relative success of essential retailers throughout the COVID-19 pandemic has helped offset struggling retail sectors. Movie theaters, health and fitness retailers, childcare centers, enclosed shopping malls and casual dining restaurants have all suffered during this extended national lockdown period.

Case Study: Best Buy

In the midst of the COVID-19 pandemic, the electronics and home appliance retailer Best Buy has shifted to something of a hybrid retail model. When the retailer voluntarily closed all of its stores on March 22, Best Buy pivoted to a curbside pick-up model that complemented its home delivery services. Best Buy’s curbside business model led to triple digit gains in its e-commerce channel. In late May, company executives reported that Best Buy was able to retain at least 81 percent of its sales volume and saw a staggering 155 percent increase in its online sales.

With states easing stay-a-home restrictions, the number of businesses that are now open to the public has started to increase. Best Buy has chosen to reopen select stores for appointment-only shopping, and stores that remain shuttered still offer curbside pick-up of online orders. Store remodeling plans of at least $800 million have been put on hold. Instead, Best Buy plans to spend at least $650 million on investments in technology and automation.

The Future of the Retail Experience

Best Buy’s successful hybrid retail model could be a blueprint that retailers can use in a post-pandemic world. COVID-19 has caused a majority of shoppers to adopt new behaviors, from utilizing e-commerce to buy non-essential items to limiting grocery store visits to once per week. Common practices during the pandemic like social distancing, limited in-store customer capacity and adjusted store hours are likely to be adopted by retailers for the foreseeable future.

In fact, the way retailers do business may never be the same again. Brick-and-mortar store layouts will inevitably change to accommodate new safety protocols. Fewer customers shopping in-store could lead to a shrinking retail workforce. Landlords and property management companies will undoubtedly seek new approaches to filling in vacant spaces in smaller shopping centers. Brands that have shown increased awareness of product and consumer safety during the pandemic are likely to gain more loyal customers. All of these and more will contribute to the ever-changing retail landscape, both in the United States and across the globe.

How can Ground + Space help?

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy. We are committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

How can I stay informed?

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.


The Future of the CRE Market

The United States economy is feeling the effects of COVID-19 since all non-essential sectors have been in a near-total shutdown since mid-March. Most states around the country won’t be lifting lockdowns and shelter-in-place orders until at least the end of May. The COVID-19 pandemic has sent the country’s unemployment rate soaring to a record 14.7 percent, a level not seen since the end of the Great Depression.

Over the course of the next few weeks, many retailers will slowly begin to open their doors to customers for the first time since the pandemic began. While this is a good sign, the success of any reopening effort will be determined in part by the average consumer’s willingness and ability to venture out to purchase more than essential items like groceries and gasoline.

Economists do not have an answer as to what the full impact of COVID-19 will be on the U.S. economy. However, most economists do agree that there will be a significant negative effect, both in the U.S. and across the globe. How will all this economic news affect the commercial real estate (CRE) market? Let’s take a look.

Sharp Spike in E-Commerce Sales

Several major retailers have been hit hard by the effects of COVID-19. Those retailers who had yet to adjust to changing consumer habits have had to turn to bankruptcy and outright closure over the past few weeks. Some of the retailers affected most by the pandemic are J.C. Penney, Neiman Marcus, Stage Stores, J.Crew and Pier 1 Imports.

On the other hand, retailers like Kohl’s have seen a spike in digital sales even as their brick-and-mortar stores have been closed for at least two months. Online sales grew to a staggering 60 percent of the brand’s total sales in the month of April, and that trend is expected to continue. Walmart has also seen skyrocketing digital sales, led by strong results for grocery and delivery services. Walmart also benefited from being designated as an “essential business.” Throughout the pandemic, all of the retailer’s U.S. stores remained open.

The Health of the CRE Market

The health of the CRE market going forward will be determined by the approaches retailers take to reopen storefronts and the impact of increased e-commerce adoption rates. Many economists anticipate that consumers will continue to rely heavily on e-commerce transactions. Retailers both large and small that can provide customers with a digital shopping platform will fare better than those with no online presence. While standalone retail assets should bounce back to pre-coronavirus levels once treatment plans are in place for COVID-19, many mall anchors, full-priced apparel retailers and mom-and-pop stores in small strip centers might not be so lucky.

Sales activity in the CRE market has fallen by approximately 17 percent since the pandemic began. Despite this sharp decrease in activity, capitalization rates have remained steady. Rates have fallen by only about seven basis points according to CoStar data. Most investors and landlords are focusing on rent collection and vacancy concerns for the time being, but there is still a demand for high-quality SNTL retail.

Experts in STNL Retail

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have several outstanding retail assets on the market right now. Our CVS Pharmacy listing features a NN corporate-guaranteed lease that was recently extended by 20 years. The Tire Choice property that is currently available is situated within a dense retail corridor in The Villages, Florida and boasts a brand-new 20-year NNN lease. Our team is committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

Stay Informed

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.

 


Commercial Real Estate Sales During COVID-19

Although commercial real estate sales have plummeted during the COVID-19 pandemic, some assets are still proving valuable to investors across the globe. Which retail assets are still selling during lockdown? Essential businesses.

What’s an “essential” business?

The exact definition of “essential” varies by location, but the Department of Homeland Security issued guidance on the subject in mid-March. Generally speaking, essential businesses include the following: supermarkets and grocery stores; big-box stores; pharmacies; convenience and discount stores; hardware stores; banks; gas stations and auto repair shops; and pet stores, among others.

Nonessential businesses, on the other hand, tend to be recreational in nature and do not provide needed services related to food, health or financial support. Restaurants fall into this category, but many state and local governments have allowed restaurants to remain open for curbside pick-up and delivery service.

What retail assets are selling right now?

The commercial real estate assets that have been most pursued by investors during the COVID-19 pandemic are single-tenant net lease (STNL) properties. Investors seeking a sense of safety in an uncertain economy are pursuing deals that feature a single-tenant property with a tenant that offers an essential service. These assets tend to boast net leases in which the tenant pays for most (if not all) of the property’s operating expenses.

According to data compiled by CoStar, investors have closed deals on more than 300 single-tenant properties since mid-March. These properties have been leased to tenants like CVS Pharmacy, McDonald’s, Burger King, Dollar General and Chick-fil-A.

Is there still a demand for STNL properties?

In short, yes. Net lease sales performed well in 2019, increasing by at least 11 percent to approximately $78 billion. The biggest driver in sales have been those investors engaged in a 1031 exchange. This particular type of transaction allows an investor to defer capital gains taxes by rolling profits from the sale of one property into a similar (or “like-kind”) property. Because of the COVID-19 pandemic, the Internal Revenue Service (IRS) extended the 1031 exchange deadline to July 15, 2020.

How can Ground + Space help?

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have two outstanding “essential retail” assets on the market right now. Our CVS Pharmacy listing features a NN corporate-guaranteed lease that was recently extended by 20 years. The Tire Choice property that is currently available is situated within a dense retail corridor in The Villages, Florida and boasts a NNN lease. Our team is committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

How can I stay informed?

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.


The Effects of COVID-19 on Quick-Service Restaurants

Quick-service restaurants (QSR) have long been a popular source for convenient, low cost meals. These factors are increasingly important to consumers facing financial hardships due to loss of income from COVID-19. Contact-less delivery and low wait times are also important to these consumers. One of the easiest ways for restaurants to meet these needs is to utilize alternate forms of food delivery: drive-thru service, curbside pick-up and home delivery.

Getting Creative

Because many local and state governments have forced restaurants and bars to cease all dine-in services due to COVID-19, quick service-restaurants with drive-thru capabilities have seen increased traffic and demand from consumers. For recognizable brands that have a strong drive-thru system in place, a decline in dine-in customers has been met with a strong upsurge in drive-thru orders. These businesses are utilizing their drive-thru lanes to limit crowd size and enforce social distancing rules while continuing to serve customers. However, only about 20 percent of quick-service restaurants in operation today have drive-thru service.

Many restaurants that do not have drive-thru windows are now offering curbside pick-up. Home delivery services like Grubhub, DoorDash and Uber Eats have partnered with many independent and national restaurants to offer discounted—and in some cases free—delivery and commission fees. Other restaurants are creating home preparation kits of some of their most popular menu items, while others are offering frozen and prepackaged goods.

Case Study: Taco Bell

Leading quick-service restaurant brand Taco Bell has set the bar for enhanced restaurant safety via its Seven Enhanced Safety Steps across all of its 7,000 U.S. restaurants. These new protocols will include contact-less service and payment; employee temperature checks; extra sanitation options for customers; and much more. These safety protocols will undoubtedly be adopted and implemented in various ways throughout the QSR sector.

In addition to its enhanced safety guidelines, Taco Bell is offering customers the chance to recreate their favorite Taco Bell dishes in the comfort and safety of their own homes. For a limited time, the At Home Taco Bar will be available for patrons via delivery and contact-less drive-thrus nationwide. This new menu offering is an easy, safe way to feed a party of six for only $25. Additionally, Taco Bell is rolling out a series of recipe cards that will feature classic recipes from the Taco Bell Test Kitchen, along with recipes for Taco Bell-inspired cocktails.

On The Market

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. We have two outstanding QSR assets on the market right now. Our McDonald’s listing is a prominent outparcel that sits along an ever-expanding retail corridor in California, Maryland, and our Taco Bell listing is a rare triple-net (NNN) asset within the New York metropolitan area. Our team is committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

Stay Informed

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.


The Coronavirus Pandemic Reshapes Retail

As many states look to reopen portions of their economies in the coming weeks and months, the team at Ground + Space are diligently tracking the effects of the novel coronavirus (COVID-19) on the commercial real estate industry across various sectors. Although the idea of returning to work is a welcome one in this uncertain economic climate, it’s important to acknowledge that companies will return slowly to an environment forever changed by this virus.

Post-Pandemic Outlook

According to reporting by the Swiss money manager UBS, the retail industry in the United States is heading towards a major shift. Current estimates show that the country stands to lose anywhere between 11 percent to 17 percent of its total store count by the year 2025. (This estimate is based on projections that e-commerce penetration will rise to 25 percent by 2026.)

Companies and retailers that already boast strong online operations and logistics networks—like Amazon, Walmart and Target—have continued to thrive during this pandemic as more and more consumers shop online. These powerhouse retailers are poised to take over market shares left behind as brick-and-mortar retailers close their doors.

The Continued Rise of E-Commerce

E-commerce sales have steadily risen over the past decade. As of the third quarter of 2018, e-commerce sales reached approximately 16 percent of total retail sales in the United States. This trend of rising e-commerce sales has accelerated considerably in response to the global coronavirus pandemic. Stay-at-home orders across the country that have stopped all non-essential business. These conditions have forced retailers both large and small to quickly adopt online marketplace platforms to service customers.

As households across the country make the shift to more online spending, struggling retailers will be forced to either pivot towards an omnichannel approach or rationalize their store counts and future brick-and-mortar expansion plans. Retailers like Macy’s, Inc. and JCPenney Company, Inc. have already made plans to close stores, and other vulnerable retailers are likely to do the same throughout the remainder of 2020.

COVID-19 Impact Across Retail Sectors

Each segment of the retail market landscape is feeling the effects of COVID-19 in different ways. If the UBS estimates are indeed correct, the loss of stores and revenue will be most pronounced in the following sectors: apparel and accessories; consumer electronics; and home furnishings. Because retailers like these make up a large portion of tenant rosters in enclosed shopping malls, many struggling regional shopping centers are expected to close. The retailers expected to weather the storm include essential businesses that are allowed to remain open during the global pandemic, as well as non-essential retailers like home improvement stores and automotive parts stores. Ground + Space has several listings available featuring retailers that are in a prime position to succeed in a post-pandemic economy.

Stay Informed

The Centers for Disease Control and Prevention (CDC) offers daily updates and other information about COVID-19 symptoms and testing in the United States. Johns Hopkins University (JHU) has created a resource to help inform the public and advance comprehensive understanding of the novel coronavirus and its effects backed by experts in global public health, infectious disease and emergency preparedness. Additionally, the World Health Organization (WHO) continues to track the number and location of confirmed cases of the virus across the globe.

How can Ground + Space help?

Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. Our team is committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.


COVID-19 Impact Across CRE Sectors

The spread of the novel coronavirus (COVID-19) across the United States has caused all but the most essential businesses to shut down temporarily. Although designations often vary from state to state, the life-sustaining businesses that are currently operating across the country include: supermarkets and grocers; farms and food manufacturers; restaurants (take-out and delivery only); hospitals; healthcare providers (like dentists, veterinarians and physician offices); pharmacies (including CVS); banks and post offices; gas stations and convenience stores; and automotive repair shops.

Many of the strategies being implemented by these retailers—like curb-side pick-up—will most likely continue as customers return to work in the coming weeks and months. Large national tenants are better positioned to weather the storm of COVID-19, but the same cannot be said for neighborhood retailers. Each sector of the commercial real estate market has been affected in different ways. Let’s take a look at how the pandemic is affecting three key sectors: convenience stores, dollar stores and shopping centers.

COVID-19 Impact: Convenience Stores

Due to “shelter in place” orders, many consumers are looking to their local convenience stores for fuel, food and grocery items. Convenience stores have become a go-to for shoppers who want to avoid crowded areas and understocked grocery stores. According to the National Association of Convenience Stores (NACS), 52 percent of convenience store grocery sales have increased during the pandemic, despite the fact that fewer people are leaving their homes.

Convenience stores are resilient assets during economic downturns. Additionally, convenience store retailers were quick to address changes related to COVID-19 in their stores. These retailers continue to pivot and adjust as needed, from offering more items that can be taken home (pre-assembled meals, bulk items and toiletries) to removing self-service stations.

COVID-19 Impact: Dollar Stores

Rural and suburban communities have long relied on retailers like Dollar General and Dollar Tree for affordable, convenient household essentials. Because of this, the discount retail market has proven resilient throughout the COVID-19 pandemic. Their unique real estate footprint, coupled with lower price points, put discount and dollar store retailers at a competitive advantage during times of economic downturn.

Because of COVID-19, many consumers are flocking to discount retailers due to strained finances. Dollar stores are a vital, consistent source for inexpensive staple items, and most accept SNAP benefits. While many retailers are struggling to combat the negative effects of “shelter in place” orders, dollar stores have seen a rise in sales. The market for these discount retailers is strong as tenants see continued demand from both new and existing consumers.

COVID-19 Impact: Shopping Centers

Shopping centers have seen a decrease in foot traffic and an increase in vacancies over the past decade due largely to a change in consumer spending habits. The COVID-19 pandemic has created a new set of challenges for both large and small shopping centers. “Shelter in place” orders mean that foot traffic has become virtually non-existent within shopping centers that do not feature essential businesses like grocery stores or pharmacies.

Open-air shopping centers anchored by grocers, drug stores or home improvement stores should expect gains during the pandemic as these tenants have all been deemed “essential.” Customers have begun to visit their local brick-and-mortar grocery stores because of disruptions to the supply chain for many online and warehouse club retailers. In contrast, regional indoor malls and unanchored strip centers will likely experience the most distress during this economic downturn.

How can Ground + Space help?

The team at Ground + Space are committed to providing up-to-date information and best-in-class services to clients during the COVID-19 pandemic and beyond. The market changes daily, so please contact one of our brokers for specialized guidance during this time.

Are you interested in maximizing your return on a commercial real estate investment? Ground + Space is a leading commercial real estate firm that specializes in single-tenant and retail NNN investments. Contact Michael Zimmerman or Brett Sheldon today to find out more about our current listings and our superior services.


Just Sold: Orange City Shoppes in Orange City, FL

Ground + Space announced today the sale of Orange City Shoppes, a multi-tenant retail asset located in Orange City, Florida. Ground + Space Principal Michael Zimmerman exclusively marketed the property. The property sold at an admirable cap rate just three percent off the original listing price in an all-cash transaction. Additionally, the listing received multiple purchase offers.

The Orange City Shoppes tenant roster includes Aspen Dental, Spectrum and Orlando Health. These service-based businesses yield an added security with Internet-proof tenancy. The new, corporate guaranteed leases for all three tenants boast built-in rent increases and multiple renewal options. Also, there are minimal landlord responsibilities within the lease for ease of investment.

Orange City Shoppes benefits from its prominent location within Orange City’s main retail sector. The property is an outparcel to Target and sits across from a 107,000-square-foot Publix-anchored shopping center. There is a growing development commitment to the area, evidenced by AdventHealth Fish Memorial’s $100 million tower expansion less that one mile from the site.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman, Brett Sheldon 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? Looking to sell one of your net leased assets? Contact us today for a property evaluation or to discuss one of our current listings.


Just Sold: Palmetto Plaza in Miami Gardens, FL

Ground + Space announced today the sale of Palmetto Plaza in Miami Gardens, Florida. Ground + Space Principal Michael Zimmerman exclusively marketed the property, which sold to an all-cash buyer. Michael Zimmerman secured multiple offers for Palmetto Plaza within its first 10 days on the market, as well as several back-up offers. This extremely rare retail center was offered below the average market rent for the Miami metropolitan area.

Palmetto Plaza is a grocery-anchored retail shopping center that sits in one of the densest, high-traffic retail corridors in Miami-Dade County. The shopping center currently houses 38 businesses. The varied mix includes national, franchised and local tenants. The 175,045-square-foot property includes many investment-grade tenants like ALDI, Dunkin’ Donuts, Sherwin-Williams, Dollar Tree and Regions Bank.

This shopping center is just 15 miles from the heart of downtown Miami. Miami is the cultural, economic and financial center of South Florida. Visitors to the site have easy access to Interstate 95, Florida’s Turnpike and Miami International Airport.

About Ground + Space

Ground + Space is a net lease brokerage firm that leads with an emphasis on personalized relationships. Michael Zimmerman, Brett Sheldon 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!