BiggerPockets Real Estate Podcast

863: Commercial Real Estate: The “Buy Box” for Buying BIG Properties w/Kim Hopkins

12 snips
Dec 27, 2023
Guest
Kim Hopkins
Kim Hopkins, a commercial real estate investor, shares her successful formula for buying profitable properties. She emphasizes the importance of her 'buy box' strategy and cap rates. Kim also seeks advice on a potential deal and discusses the challenges and expenses of tenant improvements and property maintenance. The podcast explores commercial real estate financing, negotiations, and considerations for tax benefits versus property price.
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INSIGHT

Macro Uncertainty Is The Primary Risk

  • The biggest near-term risk is macro uncertainty: unknown direction of interest rates and tenant performance.
  • Loan structure and refinancing risk make future rate moves especially consequential for commercial deals.
INSIGHT

Small Retail And Industrial Stayed Open

  • Multi-tenant industrial and neighborhood retail proved resilient in the pandemic because many tenants were 'essential' or hyper-local.
  • Small neighborhood businesses behaved very differently than large retail anchors during lockdowns.
ADVICE

Choose Hyper-Local Tenants

  • Prefer hyper-local tenants (customers drive <1 mile) like nail salons or local services that survive downturns.
  • Favor properties in infill markets with strong surrounding housing and stable customer bases.
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