In this case study, we explore a complex situation involving a property slated for conversion to a drive-thru pharmacy. The property, strategically located on a corner and previously operated as a drive-thru bank, faced potential usability issues due to recent state infrastructure modifications.
A roundabout was built at the corner where the property is situated, allegedly affecting its economic viability. To determine potential lease payments, terms, and costs for a retail pharmacy, the plaintiff seeks expert insight from a seasoned commercial real estate broker.
Questions to the Commercial Real Estate expert and their responses
Could you describe your professional background as a commercial real estate broker, specifically regarding brokering deals involving retail spaces such as pharmacies?
I have been actively engaged in commercial real estate brokerage for 16 years. As the managing broker of my company, I oversee and participate in every deal we undertake. Many of these transactions involve retail or quasi-retail spaces.
What factors should be considered when determining potential lease payments and terms for properties involving retail space?
Determining potential lease payments and terms for a property that could serve as retail space involves considering several factors. These include the existing condition of the space, foot traffic in the area, location dynamics, other tenants (tenant dynamics), tenant use and tenant’s requirements for the build-out, subject property vacancy, and absorption rates.
Have you ever reviewed a similar case? If yes, could you elaborate?
Yes, I have reviewed similar cases. Currently, I am engaged in a comparable case between a large national retail chain store and a significant regional retail landlord.
About the expert
This expert has an extensive background in real estate, underpinned by a BS in Accounting from a renowned university. They have held high-ranking positions such as Director of Financial Solutions for a technology firm and Vice President of a Realty Advisory firm. Currently, they co-own a service organization and operate as the principal broker of a realty advisory group, demonstrating their continued involvement and leadership in the field.