Strip Mall Investment Newbie Questions
Hi all,
We are a group of investors fairly new to commercial real estate; we have identified a piece of land for sale (1.8 acres zoned commercial in suburban Philadelphia) on a busy intersection which we think would be ideal for a small strip mall. Being new to the commercial arena we have few basic questions
•What is the best source to help us to identify if this piece of land has all the permits required for a strip center – Township?? County??
•Will a bank finance the entire construction of the strip mall including the piece of land? What kind of collateral do they need to finance this type of project? Typically do they require a down payment for this type of financing
•I have heard that construction costs are in the range of $75 - $90 per sqft , is this about right? Does this include all costs including land preparation etc
•What is the best source to identify leasing rates in the area – Commercial Real estate agents??
•How do you calculate how many sqft of leasing space you can have (based on having 1.8 acres of land) with parking provision etc
•What is the typical size of a retail store like a quizno’s etc 1000 sqft??
•Typically how do you go about selling/marketing the leasing space to renters/buyers
Thanks
Monish
Other things to think about..
How many rooftops in the area ?
Are units adaptible to unite ?
Before going to bank do you have any leases ?,Money
is easier to get if you have good leases. Need good drawings to presign leases.
Have market analysis of type of quality of building to
erect.
Is that the best use of the land/ or is a big box with one tenant on a long term lease a better use ?