Thinking of buying a strip mall. How can I make sure I'm not missing something?
I'm thinking of buying a strip mall priced at a few million dollars. Of course the seller has listed via a broker and I saw the listing, but do I need to find an agent to represent me? Do I need to reach out to a commercial real estate agent not affiliated with the representing company or should I ask my long time business lawyer to help represent me? Is it hard to find someone to represent a client for a property that the agent is not listing themselves? I ask because I have noticed that commercial real estate agents generally try to sell me their listings, but never really want to discuss listings of other brokers.  

I have owned buildings with retail space, but they have been cheaper properties and I generally personally knew the leasee's so it was never really a hassle for me. Now that I am looking into a much higher priced property, I want to make sure I have my bases covered before spending that kind of money. 

Any replies are appreciated.
[{"id": "hzyraui", "text": "You do not need an agent. The selling agent will be delighted to get both sides of the commission and will make your deal more difficult if he/she suddenly needs to split with someone. Your lawyer can handle the transaction. Make sure you complete a thorough independent due diligence. The seller\u2019s agent is exactly that and not your ally.  Assume every detail presented to you is false until you independently confirm.  Good luck with your deal!", "replies": [{"id": "hzysp8d", "text": "A business lawyer cannot handle a CRE transaction. I don\u2019t know if they do the work but title review, survey, lease DD for a larger property possibly with Anchor tenant isn\u2019t a casual transaction IMO. \n\nAgreed on seller info as false until confirmed. Retail is a minefield right now!", "replies": [{"id": "hzyukpm", "text": "I have at least three lawyers I\u2019ve used for stuff like this.  Find a new lawyer.", "replies": [{"id": "hzz17ek", "text": "Same. Anytime I've worked on a transaction like this, a real estate attorney has completely handled this part of the process.", "replies": [{"id": "hzzg0q6", "text": "As a real estate lawyer, if your lawyer can't handle title, survey, lease review/abstracting, and zoning compliance, you need a new one.", "replies": [{"id": "i00096r", "text": "As a broker its such a fucking nightmare working with non CRE attorneys.  Transactions where the brother in law is a personal injury attorney, or their friend dave the lawyer has been handling their business affairs for 30 years are the worst.  \n\nYou get what you pay for folks.  \n\nI always find it funny too how the more experienced cre attorneys defer to the brokers on a lot of issues and the brokers are perfectly comfortable doing the same with everyone understanding their scope of work and staying in their own lane.  Thats a good relationship for the client where they get the best service.\n\nThe inverse is where the family attorney who does mostly wills or whatever gets involved and starts spouting off incorrect valuation info and deal terms while the broker is pointing out legal issues they are well aware of though not qualified to handle but the attorney isn't handling them and the entire process grinds to a halt.", "replies": [{"id": "i008mj5", "text": "Oh lord. Lawyers stay away from biz items, pls. Otherwise start calling your malpractice insurer.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hzyrbty", "text": "There aren't really any buyers agent in CRE, if you want you can find a Buyer Representative Firm they will represent you and make sure you don't get screw over, and they usually take a fee from transactions. I would suggest you finding a Transaction lawyer when you are a newbie, and a Leasing Firm which will lease your space, for a fee. Make sure you use proper lease agreements , contracts and legal structure if you are inheriting tenants.", "replies": [], "depth": 1}, {"id": "hzyrbww", "text": "If you\u2019re not 100% comfortable with knowing the implication of the price you are paying, hire a broker to represent you who is not on the selling brokers team. they can guide you through the process (pricing and otherwise). Commission comes out of the sale price anyhow in most markets.", "replies": [], "depth": 1}, {"id": "hzysd72", "text": "Verify numbers! Don\u2019t believe the offering! I\u2019ve seen offerings that are so jacked up it just borders (or is) fraud. Verify, verify, verify!", "replies": [{"id": "i00ojsi", "text": "How do you verify offering?", "replies": [{"id": "i01mhw6", "text": "ask for detailed due diligence of everything", "replies": [{"id": "i0280ic", "text": "Lease copies, verification of expenses, thorough physical inspection", "replies": [{"id": "i0daqsk", "text": "^^^^ This and Bank statements", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hzythil", "text": "Your business attorney will not know the market or understand the financial implications of the deal no matter what he says. I would seek out an agent who specializes in retail investment or leasing in the area and ask his opinion. Try to take them out for coffee or lunch. If he/she is extremely knowledgeable and offers valuable insight, consider hiring them to help you underwrite this deal. It is hit or miss in capital markets if they seller will pay the buyer rep fee, but paying 3% to a stand out broker can be a decision that nets you millions of dollars. The catch is you need an expert and a specialist, there are so many generalist out there that don\u2019t add any value. It\u2019s so important to have a trusted advisor to call before you get into the deal.\n\nAsk broker questions like:\n\nWhat\u2019s the retail leasing market and investment sales Market like?\n\nWhat do cap rates look like for retail product?\n\nWhat are the strengths of this property and the tenant mix?\n\nWhat challenges do you see? What do you think about the location? \n\nDo you think we can push rents? \n\nAn expert broker will give detailed answers to these questions including granular data on cap rates, net absorption, leasing activity, new development etc a dud will answer with \u201cyea the market is really hot, let\u2019s sell\u201d or something vague and general.", "replies": [{"id": "hzzap6k", "text": "To add on: OP needs to verify all numbers used to calculate the CAP rate. Sometimes there's expenses left out that should be included for an accurate CAP rate.\n\nEdit: OP can also ask the listing agent to provide comparable properties &amp; their CAP rate. His attorney could review the leases &amp; he'd want to look for length of leases &amp; evaluate the potential risk of any one tenant leaving/vacancy cost.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hzz11z6", "text": "Broker and landlord here. An attorney will be of use as it relates to purchase agreement, title report survey, estoppels, snda's, etc. A buyer Broker will be useful in understanding the rent of the tenants and the underlying asset value of the property. In a perfect world you would have both involved. Further, a Broker may turn into your leasing agent when vacancy occurs.\nNow, whether the listing broker is willing to share the fee, or how painful they make the process, is another story. Their goal is to sell the property for their client, so in theory a buyer Broker should help that, not hinder. Particularly a buyer with less experience- having another agent on the buy side could make the listing agents workload less. However, expect in a worst case scenario to pay your broker and your attorney.", "replies": [{"id": "i00f2s1", "text": "I am not a CRE guy but these were some of the same points I was going to make. You need a buyer's agent to help you through the process I think and they may be your leasing agent when you need one. If they don't split the commission they will usually work for a flat fee or some other arrangement.", "replies": [], "depth": 2}, {"id": "i00p3dg", "text": "Do you think the buyer broker has to be local? Can I have someone in NYC doing a deal in some area?", "replies": [{"id": "i02mqck", "text": "License is required, local is best, but NYC is another beast entirely.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hzz12id", "text": "You can use the seller's broker, but know that you will be that broker's \"customer\" and not their \"client\" and they do not have your best interests covered under agency and license law (attempting to keep you from negotiating the price down to keep their commission higher).  I'd recommend getting an investment sales agent to assist you and make them earn that commission by now getting your sale across the finish line.", "replies": [], "depth": 1}, {"id": "hzz3wy5", "text": "If you found a public listing for a strip mall, it is either a dog, or overpriced.", "replies": [], "depth": 1}, {"id": "hzz47ik", "text": "Location?", "replies": [], "depth": 1}, {"id": "hzz9pve", "text": "Use a broker. \nBe there for the serving of the estoppels.", "replies": [{"id": "i1o9z8v", "text": "What does being there for estoppels do?", "replies": [{"id": "i1ooreb", "text": "You will know if the tenants don\u2019t agree with a doctored up lease or are planning on leaving. If anything changes from the leases that you have in hand, renegotiate to get the cap rate that was advertised.", "replies": [{"id": "i1oz7ke", "text": "Makes sense - thanks.  Is it also typical to be able to  \"interview\" them to gauge renewal possibility, higher rents if you're planning capex, etc? Or is the estoppel generally your shot for getting this intel?", "replies": [{"id": "i1p75gz", "text": "When your there, just ask if they are happy and have any issues. That knocks out two birds with one stone. You find out about deferred maintenance and tenants happiness.", "replies": [{"id": "i1p9x5c", "text": "I like that - thx for the response!", "replies": [{"id": "i1pampa", "text": "Keep in mind that taking care of deferred maintenance early on might change a tenants attitude for the long haul.", "replies": [{"id": "i1pce8c", "text": "Definitely part of the strategy I'm starting to cobble together which is basically to do take care of deferred items immediately to improve the property in order to keep/renew good tenants and position for higher quality at turnover.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "hzznbrs", "text": "I'm a CRE attorney. I pm'ed you.", "replies": [], "depth": 1}, {"id": "hzzyvid", "text": "If you already understand the deal from the numbers side, I'd focus on having a really good attorney who handles a lot of similar properties in the same market.", "replies": [], "depth": 1}, {"id": "i00bweq", "text": "Verify the leases are also triple net and see where they sit comparable to the market to determine potential increases.", "replies": [], "depth": 1}, {"id": "i00pd9o", "text": "Hire a broker or a lawyer who is a landlord.. I swear some lawyers kill deals for me.. make sure they are business - minded like yourself.", "replies": [], "depth": 1}, {"id": "i00v323", "text": "Do your due diligence on all things land use oriented. Get title reports.", "replies": [], "depth": 1}, {"id": "i00vger", "text": "i work for a company that does this work for you. DM me.", "replies": [], "depth": 1}, {"id": "i01m8s5", "text": "Check those rent rolls, tenant exposures, leases etc, strip malls are really tricky right now", "replies": [{"id": "i029gvz", "text": "Can be a house of cards. If center hits half occupancy then tenant X can terminate or pay next to nothing.", "replies": [], "depth": 2}], "depth": 1}, {"id": "i01mu1l", "text": "Calling it a \u201cstrip mall\u201d makes me think you need to understand retail real estate first", "replies": [], "depth": 1}, {"id": "i024ebx", "text": "Use a broker to purchase (not the listing agent, someone who is on your side)\u2026.", "replies": [], "depth": 1}]