In a recent piece, I mused at the number of shopping centers, mostly built in the ‘60s and ‘70s that were so ill-conceived that within less than their half-life they had fallen on hard times. Massive vacancies surrounding a handful of sub-class tenants.
Oddly, knowledgeable investors, investors who understand the dynamics of centers, have not snapped up the huge number of them that could not only be viable but bring an enormous return on investment.
There are several tried and true generic formulas that if properly put into place all but guarantee the success. To begin with, the facades must be changed so that the center isn't a collection of walls that are chopping up several connected perfect rectangles.
Drive by one or more of the derelict centers in your town or neighborhood, pull into the parking lot and dream what could be done to bring the center back to life.
In a couple of days, I'll tell you what we recommended as consultants that revived several centers. But before that, I'd surely like to hear your thoughts.
Of course my team can easily be gathered together again to do market study and center revitalization recommendations, as well as actually bring in the new tenants. For information about us: Bill Cherry, Realtors
BILL CHERRY, REALTORS
DALLAS
214 503-8563
Copyright 2008 - William S. Cherry
Bill...you always post after I go to bed!
With todays costs for permits, materials, land etc.....you would think these would be perfect opportunities!
Adam, I think you're right. More of them are good investments than aren't.
Andrew, we've done a lot of this over the years. Interestingly, it's pretty easy to see at first blush which ones can be brought back to life and which ones can't. It doesn't seem to take a trained eye. Delivering the goods, though, does require a leasing consultant with an acceptable track record reputation with the tenants and their leasing representatives.
Miss Joanie, I sneak in here and type these things while you're asleep so you'll have something fresh to think about the next morning. And you've picked almost every reason why they are full of opportunities.
Bill