Beth’s Blog

One of the biggest mistakes landlords make is assuming a franchise tenant is automatically a strong tenant. If it’s a franchisee opening their first location, they’re essentially a startup—and you should treat them exactly like a mom-and-pop. That means doing full due diligence before agreeing to any deal. First, I require a credit check on both spouses (check your state laws, but in many states a guarantee may not hold if both spouses aren’t included). I also request a personal financial statement, bank statements, and a breakdown of startup costs. If someone tells me they have $30,000 in cash but their bank statement shows $6,000, that’s a red flag—and I’m going to ask questions. Next, I look at cash versus debt. If a tenant has minimal savings and significant credit card debt, that’s a warning sign. Starting a business is expensive, and I want to know they have the financial runway to survive the early months. If it’s a startup, I also ask for a simple one-page business plan showing projected revenue and expenses—rent, utilities, payroll, insurance, marketing. I want to see that they’ve thought through the economics of their business. And if they’re asking for tenant improvement money, I

Every shopping center has challenges. Maybe you have an elbow space with no visibility. Maybe a space has limited parking. Maybe prospects think your rent is too high. The mistake many landlords make is trying to convince the wrong tenants to accept those obstacles. Instead, I remove the objection entirely. If I have an elbow space with poor visibility, I don’t spend time pitching it to tenants who rely on impulse traffic. That’s a waste of time. Instead, I canvas businesses that are already operating in elbow spaces in other centers – things like tutoring centers, therapy practices, staffing agencies, or specialty service users. Those tenants already understand the trade-off and won’t see it as a deal breaker. The same strategy applies to parking constraints. I once had a space where handicap spots were directly in front of the entrance, meaning there was effectively no regular parking. Most retailers hated it. But an orthopedic shoe store loved it because many of their customers had handicap permits. The obstacle became an advantage. Rent objections work the same way. If my rents are $30 per square foot, I’m not canvassing centers where rents are $20. I focus on areas where tenants are

When you’re deciding between two tenants – a well-known franchise and a local operator – it’s easy to assume the bigger brand is the safer bet. But in my experience, that’s not always true. Many franchise rollouts look exciting at first. They have marketing budgets, strong branding, and lots of buzz. But a lot of those concepts are new, and not all of them survive. I’ve seen plenty of “hot” brands expand quickly, request large tenant improvement packages, and then struggle just a few years later. That’s why I always dig into the financial statements. Sometimes a franchisee with multiple locations looks impressive on the surface, but when you study the numbers closely, the picture changes. On the other hand, a local tenant with two or three successful locations may actually be the more stable operator. I once worked on a deal where the choice was between a major corporate restaurant and a local family-owned concept. My client – who happened to be a CPA and attorney – analyzed the financials and chose the local tenant. Twenty years later, that local restaurant is still operating successfully, while the corporate concept has closed many of its locations. Another factor is tenant

If you’re hiring a third-party leasing broker for your shopping center, don’t just take the first pitch you hear. The right broker can accelerate your leasing velocity—but the wrong one can waste months. Start by interviewing three to five brokerage firms. Look around your market and see who has the most retail listings or the highest-profile properties. Then invite them to pitch your asset. One important rule: make sure the actual agent who will work on your property attends the meeting—not just the senior broker who wins the listing. During the interview, ask them to bring their deal sheet from the past 12–18 months. I want to see evidence. Did they close two deals or twenty? Then dig deeper—pick a deal and ask how it happened. Did they canvas the market? Did they cold call the tenant? Or did the deal come from a sign call? True prospectors will proudly tell you stories about chasing tenants for months before landing the deal. I also like to see how prepared they are. Ask them to come with a market study and a leasing strategy for your property. What rents do they think the space should command? Who are the target tenants?

Owning a shopping center isn’t just about leasing space—it’s about managing hundreds of small details that protect your asset and keep tenants happy. Over the years, I’ve learned that simple operational habits can make a huge difference. For example, number your light poles. It sounds minor, but when a tenant calls about a light being out, you can tell your electrician exactly which pole needs repair. We also do weekly light checks because lighting isn’t just about aesthetics—it’s about safety and liability. Another one: I don’t sweep parking lots. Instead, I hire a porter to walk the property and pick up trash, cigarette butts, and debris. For most neighborhood centers, that’s far more effective than sweeping a mostly empty lot. I’m also big on first impressions. Bright flowers at the entrances and near pylon signs catch the attention of drivers and help the center stand out on busy streets. When it comes to leasing, I never use lockboxes on vacant spaces. If someone wants to tour the property, I want to be there. It allows me to control the experience and answer questions in real time. Finally, every owner should maintain a vendor list—electricians, landscapers, roofers, maintenance crews—both in your

One of the most overlooked value drivers in a shopping center is signage. If your tenants aren’t visible, they’re not getting traffic – and if they’re not getting traffic, they won’t stay long. First, let’s talk about pylon signs. I’m a big believer in maximizing them. I want as many tenants on that sign as possible (without making it look cluttered). The anchor might get two panels, but I try to create opportunities for smaller tenants too. If demand exceeds space, I’ll actually sell pylon spots for a one-year term so multiple tenants can rotate through the exposure. That creates value and fairness. Second, I’m very particular about how signs look. I require channel letter signs mounted directly to the façade – no raceways. Raceway signs collect debris, look cheap, and drag down the visual quality of the center. Channel letters look cleaner, more professional, and elevate the property. And here’s a trick many landlords miss: reverse lettering. I prefer white letters on a dark background because they pop from the road. Visibility matters. I also encourage tenants to simplify their message. Instead of “Smith Nail & Spa,” just say “Nails.” Customers driving by care more about what you do

When a tenant moves out and leaves a space looking rough, many landlords immediately think: Let’s vanilla shell it. But before you spend thousands fixing up a space, slow down and test the market first. My rule? Give it about 90 days. List the space exactly as it is and start showing it. If it’s a former Subway, call it a “former Subway.” Everyone knows what that looks like, and some prospects won’t care because they’re planning to gut it anyway. If a tenant is willing to take the space as-is, you may save yourself a lot of money. And if they want you to fix it? That’s a negotiation. You can always say, “If you want it cleaned up and renovated, the rent will be higher.” Now, if you’ve shown the space 15–20 times and every prospect complains about the condition, that’s your signal. At that point, investing in repairs or creating a vanilla shell might make sense to help the deal get across the finish line. This same strategy applies when you have multiple rough spaces. Don’t fix them all at once. If you have ten ugly vacancies, maybe you vanilla shell two—just enough to create spec spaces

Hiring a third-party leasing firm doesn’t mean you go hands-off. If you own a shopping center, you still need visibility into what’s happening at your property – and that starts with the right reporting. At a minimum, your listing agreement should require a monthly leasing activity report. That report should show every prospect, every tour, and – most importantly – how the lead was generated. Was it canvassing? A sign call? A tenant rep broker? Social media? This tells you whether your leasing agent is actually prospecting or just waiting for deals to fall in their lap. Now here’s the mistake many owners make: they schedule endless calls to review the report. Don’t do that. Your agent’s job is to be out in the market generating leads – not sitting on the phone with you every week. If you have questions, send an email and set up a call only when necessary. The same principle applies to property management. You should receive regular reporting like rent rolls, financials, delinquency reports, renewal timelines, HVAC reports, and a narrative summary of the property. These reports help you “see” the asset even if you’re not physically there. Rockstar Tip:Review the reports, visit the