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?