There's been an expression around for a few years that dictates, "Think outside of the box." While it's overused, tired and annoying to hear these days, it still has a life. Here's a place where it does.
Throughout America are weird outdoor strip centers and worn out malls that are begging for an enthusiastic second life. Most go unnoticed year after year. The remaining tenants weren't there on opening day. A tattoo parlor, a fake nail parlor, a dry cleaner's substation, a flea market, and one of the forms of "everything is a dollar."
Some of them had important anchors like Sears, J.C. Penny, Dillard's, Montgomery Wards. But they haven't been in the neighborhood for years.
To the landlords, property taxes and insurance continue to accrue, deterioriation chips away at the asset, and the huge cardboard For Lease signs now hang on by one piece of tape in a cockeyed fashion. The leasing agent hasn't been by to check the property in months, but the landlord lets him hang on.
Ironically, a good portion of these centers and malls can be revitalized and retenanted. They can be a profitable asset again. It's happening in pockets here there and everywhere all over America. And it is a perfect niche for Realtors who are struggling to make a living in the home market and are looking for a new income stream.
The secret is quite simple. American and foreign investment trusts are flush with money and looking for stable American real estate investments. These centers present three ways for them to invest: as a joint venture partner with the current owner, as the sole owner, as a lender with an equity/income participation.
The Realtor's part in this is to put together the team that will modernize and redevelop the property, and will solicit and tenant it.
If you need us, my team of experts can provide the foundation and back-office expertise for putting together these plans and bringing them to a succsssful conclusion. We have solid credentials and we've worked together for years. We'll augment you and your team!
BILL CHERRY, REALTORS
DALLAS
214 503-8563
Copyright 2008 - William S. Cherry
All Rights Reserved
Bill...is this pretty much what you are concentrating on now? It sounds really exciting and challenging...right up your alley!
I don't get into the Commercial RE but this seems a bit more creative!
I don't know if there are any Commercial groups on here but maybe you should start one....you could probably make some great contacts?
Hi Bill. I think one of the big challenges for old retail centers is the move away from brick and mortar retailing towards more online shopping... and unfortunately with gas prices rising by the minute I think this will continue to be a challenge for the foreseeable future.
Miss Joanie
I got into the real estate business by specializing in making old properties viable again. Old homes and apartment buildings, small retail buildings, historic downtowns, etc. So I like to keep my fingers in the mud and speak out about it from time to time.
There's a lot of social commentary there as well as a way to not only make a lasting impression but also fill your bank account with bucks.
Steve, Until the end of time people will want to put their hands on the merchandise, smell it, feel it and look at it in person. Add to that the social part of the experience of reality shopping, and there is still a lot of money to be made on the streets.
That's why merchants have to be more niche builders than "we sell everything" merchants. But you're definitely right about the internet.