Delaware County commercial real estate associate broker Jeff Dowd of Zommick McMahon Inc. is one of the top commercial agents in the region. With over a decade of experience, Dowd has worked in every area of the commercial real estate market, working tirelessly to match sellers with their ideal buyer. Another area Dowd specializes in is helping landowners increase the value of their property by finding the ideal tenant.
“One of the things a good commercial real estate broker does is help landowners find the perfect tenant to add value to their property,” Dowd says. “And that is exactly what we do here at Zommick McMahon. We are the liaison between the property owner and the tenant.”
Landowners are often unaware of the potential that their property may have. Some own vacant lots, while others have buildings that are no longer viable in their present location, such as an old gas station or drive-in movie theatre. Dowd can often find a new tenant for these types of properties, especially those in busier locations.
“Traffic light corners are the most valuable space, because the corner brings access from two different roads” Dowd continues. “A prospective tenant, particularly in the retail sector, will also want to study the traffic volume to find out if the property is likely to garner the level of exposure they are looking for.”
The quality of the tenant is another factor in building value for the landowner. The property is usually more valuable when occupied by a national chain, particularly one with AAA credit.
“What we are looking for is a well-established entity with top-notch credit that will come in with a triple net ground lease,” Dowd continues. “This means the tenant will not only pay the rent, property taxes, and maintenance, but will also pay the cost of the reconstruction needed to tailor the property to their needs.”
Over the years, Dowd has located tenants that have increased the net worth of several property owners in the area. A couple examples include:
• 2 investors paid $250,000 for a property with a “mom and pop” tenant. After this tenant vacated the property, Dowd brought in a well-known bank to occupy the space. The property is now valued at $1.5 million.
• Another property owner had 2 vacant office buildings in Media, PA. The owners paid $1.1 million for this property. Dowd found a health care company to come in and build a new medical facility inside the buildings. The owner refinanced the property after the leases were signed, and the bank valued the property at $4.8 million.
With the right piece of property and the ideal tenant, Dowd can help a landowner receive higher rents for their investments and increase their overall net worth.
For more information, go to www.JeffDowdRealEstate.com