Interview: Imagine you’re underwriting a retail property and one day before investment committee you find out that the anchor tenant’s sales fell by 15% the previous year. How do you handle this situation?
What are some of your responses to this question if it came up during an interview?
[{"id": "fefeqve", "text": "I don\u2019t know where you are in the process of getting the deal under contract, but I\u2019d highlight it as a risk of the deal.", "replies": [], "depth": 1}, {"id": "fefiqb7", "text": "Context matters. Why did sales decrease? Is the anchor tenant leased or owned? If owned, is there an operating covenant? If leased, anchors usually pay very little rent; would getting the anchor space back actually be a blessing in disguise? What is the overall health of the parent company?  You need a story.", "replies": [], "depth": 1}]