Commercial Property in Southern Calif.: Question

My family owns a few large commercial property in Alhambra on valley. In my experience big companies do their own scoping when looking for places, unless your property has high foot traffic or is highly visible with two points of entry from the street it usually gets looked over. We had a Starbucks in our plaza for many years and what also happens is they tend to set their own rental price (my own experience, might not always be the case) and terms with little wiggle room to negotiate. While they didn’t generate much revenue ($2.50/sf NNN lease) they did raise the status of our lot and we were able to charge more for the in between tenants. Our block also had a medical building which was actually the most lucrative where we were charging upwards of $5-$6/sf due to the amount of parking we had. It’s expensive for doctors and dentists to build out from scratch since their equipment usually requires special plumbing/electrical outlets. If you’re willing to invest and have enough parking to support it, you may want to consider adding a grease trap and converting the unit into a restaurant; although I don’t know enough about your demographic and current tenant types to make a solid judgement. My suggestion is to find another dental practice to replace it since that would require the lease TI on your part, and research the lease rates around your area to see if your current rental rate is below market.

/r/realestateinvesting Thread