Waad Nadhir is a property developer based in Bloomfield Hills, Michigan. He has worked with many partners in the area to acquire, finance, and manage several properties in his community, including several retail properties. Nadhir has had success for many years as a developer, businessman, and consultant. He is now the President of BOSC Realty Advisors, based in Bloomfield. Here are three things he has had to get to know about retail leasing over the years:
- Location. Let’s start with an obvious factor when buying, selling, or leasing property of any kind. For retail businesses, it’s all about foot traffic and what the neighbors are buying. If your store is out of place in a certain part of town, you won’t do as well as if you’re near similar stores. If you’re developing a retail space, as Waad Nadhir helps clients do, you have to consider what kinds of stores would do well in the new space.
- LOIs. Letters of Intent (LOI) are the beginning of the negotiatio process. Both sides, developers and lessees, can negotiate the terms of the rental agreement, which at this stage is not yet set. The LOI is simply the terms of the proposed deal and the identification of the lessee and the landlord.
- Types of leases. As Waad Nadhir knows, there are many different types of leases that could apply in a retail property agreement. The most common is the triple net lease, which means that the tenant pays a base lease amount, additional rent of the retail space, including insurance, taxes and takes care of maintenance issues.
Waad Nadhir has worked with many property owners and developers during his long career.