With many nationwide chains and local businesses looking to establish a presence in Reno, the demand for retail spaces remains strong in the city. That means the city is a great place to own retail properties. As those businesses move in, you’re going to be in a better position to profit through their leases.
Whether you’re an owner-user looking for a new home for your business or an investor looking to leverage the high rental demand, NAI Alliance’s Retail Team is here to help. With our homegrown real estate team, we’re well-positioned to provide you with the best advice regarding retail investing.
Requirements for retail properties differ from those for residential properties. When working with residential properties, real estate agents typically ask clients about their lifestyle needs, such as the number of bedrooms and proximity to schools. For retail properties, we’ll create your buyer profile (whether you’re an investor or an owner-user) and work to develop the specifications for the ideal retail space tailored to your needs. The specifications include the retail space type, size, budget, and other requirements, such as parking space and visibility.
Once we have the requirements ready, we can start searching for lenders. Instead of residential mortgage lenders, we look for community banks or lenders with a retail focus. From there, we’ll submit your essential documents, such as P&Ls and tax returns, to initiate the underwriting process and obtain a loan pre-approval before proceeding.
Location is an essential consideration for retail spaces, and that’s why we use verified reports to research the retail vacancy, demographics, and other important statistics on each Reno submarket that fits your needs. Whether it’s the retail nodes in South Meadows Parkway or the retail belt on North McCarran Boulevard, we’ll find the perfect submarket for you. We also identify potential synergies between stores or tenants to further enhance your foot traffic potential.
Where residential property searches utilize platforms such as MLS or Zillow, we employ commercial real estate-focused platforms to identify potential retail property deals. But we won’t stop there, because we’ll tap into our brokerage networks and pocket listings to find great properties for you. We’ll even cold-call retail space owners to potentially find sales that you won’t find at any public listing.
Once you’ve picked properties and created a shortlist, we’ll do a preliminary financial analysis. We’ll provide you with snapshots of the property’s potential NOI, rent, cap rate, and other statistics to ensure you know all the financial details before purchasing.
Touring a retail property has some similarities to touring homes. You’ll determine whether the building looks visually appealing, make sure the layout is good, and see whether the property is a good fit for you. But in retail properties, you’re also examining parking space, relevant utilities, and visibility from main roads. Additionally, we’ll help you observe foot traffic by doing drive-bys at peak business hours.
Once you’ve settled on a potential property, we’ll help you get the Letter of Intent ready. It’s similar to a Purchase Agreement you make before buying a house, but it has more conditions because due diligence for commercial properties usually takes longer, and there are contingencies to go over.
Before you finish your purchase, due diligence is required to ensure the property is up to all relevant standards. We’ll conduct environmental, physical, and traffic inspections to thoroughly examine the property and identify areas for improvement, ensuring it meets the city’s commercial property requirements.
Once the property is ready, we’ll coordinate with the chosen lender to deliver the due diligence reports and secure your loan approval. We’ll also work with trusted insurance companies to provide comprehensive protection packages for your property, including hazard, liability, and other necessary coverage.
Finally, we’ll work with Washoe County authorities to organize deed signings. Then, we’ll hand over all the relevant maintenance contracts, building manuals, and access privileges to you. We’ll also officially introduce you to the property manager and fully transition ownership to you.
Some say that retail is dying, but we see it evolving. While it is true that product-based businesses are struggling, there is considerable growth in experience-based retail. Retail sectors such as personal services, restaurants, healthcare, and entertainment are adapting and flourishing.
Whether you’re a landlord looking for the perfect anchor tenant, or a tenant looking for the perfect place to accelerate your growth, our team is ready to help you explore opportunities, evaluate your alternatives, and execute on a plan that matches your business strategy.
Our advisors have decades of experience in Reno’s retail sector and are ready to help you take the next step, whether it’s your first, or your fifteenth.
We leverage our extensive market experience to deliver customized solutions that attract the right partners, enhance your business strategy, and maximize the value of your investment.
Sr. Vice President, Principal
Sr. Vice President, Principal
Director
It’s a good time to invest in retail real estate in Reno, thanks to its robust demand, with a 4% retail vacancy at the end of 2024. As large retail chains keep expanding into Reno, demand for retail space will keep rising, meaning a retail property investment can be very lucrative.
You don’t strictly need a real estate agent to find good retail space, but real estate agents can do more than find you a place. We leverage our knowledge and expertise to find you places that may not be readily apparent in public listings and guide you through the entire property-buying process, ensuring a smooth and seamless purchase.
The primary difference between investing in retail properties and residential properties lies in your tenants. In residential properties, tenants are typically families or households, whereas in retail properties, tenants are usually businesses. Retail investing also generally requires a higher initial investment and more complex management to fulfill your tenants’ needs.
Whether you should invest in retail real estate or other types of commercial real estate heavily depends on your real estate investing goals and risk tolerance. We recommend exploring the various types of commercial real estate and selecting the one with which you’re most comfortable investing.
Retail property leases commonly last three to five years, but leases with 10-year terms aren’t unheard of. Generally, lease durations are based on agreements between the property owner and the tenant, so the lengths can be variable.
