Retailer doing 20 year leases? Might be a ground lease?
I’m competing with an LOI where the LL has received a 20 year lease. The building is 1600 SF but it must be a scrape and 20 year ground lease, right? That’s all I know right now, nobody is signing 20 year existing building leases in 2022, right?
[{"id": "i2u91j2", "text": "Ground leases are 50+ years (some 100 years).  I have several.  A 20 year NNN lease is not uncommon.  It's normal.  Most are comprised of a ten year initial term and two (2) five (5) year options.  90% of credit Tenants and major regional Tenants request these terms.", "replies": [{"id": "i2yx2wf", "text": "I\u2019m doing 10+5+5, just haven\u2019t seen 20 year initial term on existing building lease. Yes for ground leases. I\u2019m 18 months in, still learning \u2026obviously. Thanks!", "replies": [], "depth": 2}], "depth": 1}, {"id": "i2uncrs", "text": "They probably have a good guy clause from the owner and minimal escalators. Ask the other agent if he sees this going to highest and best phase. I would do a 20 year lease if it\u2019s beneficial for the tenant, minimal escalators and a large TI budget. I had a 15 year roll across a few months ago but the prospective tenant just wanted too much.", "replies": [], "depth": 1}, {"id": "i2y0bc5", "text": "All of the pad sites I own across the country we are doing 10-20 year NNN deals for ground up development or on existing buildings but we turn key their space. Not uncommon. But if it\u2019s a 20 year lease it\u2019s probably a high quality credit tenant.", "replies": [{"id": "i5uozta", "text": "I\u2019d be interested in learning more about your pipeline. Let\u2019s connect.", "replies": [], "depth": 2}], "depth": 1}]