As a landlord rep, your tenant matchmaking ability plays a big role in the success of your client’s development. So, how do you navigate all of the tenant options out there to find the perfect fit for an available space?
We spoke with brokers to determine what key characteristics make a great tenant. Their insight pointed to three main factors that set ideal tenants apart from the crowd.
The preliminary financial qualification for a tenant is their ability to pay rent. But ideally, you want to find a tenant that will add more value than that – preferably through their stability or growth trajectory. After all, a thriving business will attract more thriving businesses!
Here are a few indicators of financial strength to consider:
- Is the prospective tenant’s industry growing?
- How tech-resistant is their business?
- Does their product or service complement others in your client’s development?
Primrose thoroughly vets the financials of each of our Franchise Owners, so you can rest assured that you’re adding a viable tenant to your mix. According to the third-party SBA Enhanced Analysis, Primrose Schools continues to have one of the lowest Small Business Administration default ratios in the industry. In terms of growth, there is high demand for quality child care across the country. Primrose is poised to add nearly 125 new schools to the system by the end of 2020 to meet the need for high-quality early education and care across the country.
A Proven Track Record
When considering potential tenants, the brokers we talked to said they generally prefer
corporations over individuals. Specifically, they look for corporations with a strong brand reputation. Working with a tenant that has a track record of success helps to mitigate some of the risk that comes with real estate transactions and can provide added peace of mind.
As Primrose has grown from a small operation to a leading, nationwide brand, our School Development Team has put an emphasis on integrity and excellence. From years of experience, our team knows what demographics and market factors make a site successful for a Franchise Owner and their business. With locations in urban, suburban and mid-sized markets, we’re also flexible in the design of our schools. Our portfolio includes locations in mixed-use developments, retrofitted spaces, stand-alone buildings and within corporations. The combination of knowledge, integrity and flexibility has helped us build a track record of success that spans more than three decades.
Excellence in Leadership
Another benefit of working with an established corporation is sound leadership. When you’re working with a tenant that has excellent leadership both in the C-suite and in their Real Estate Team, you can be confident the real estate process will go as smoothly as possible – and that they’ll add value to your client’s development.
Bill Pierquet, senior vice president of school development, and John Rosen, vice president of real estate and development, lead the Primrose Real Estate Team. Both hold decades of experience in multi-unit market expansion; site selection; land and building development; add-on acquisitions; and asset, lease and facility management. Drawing on this deep industry knowledge, they provide strategic direction and counsel to our regional Site Acquisition Managers who guide each Franchise Owner through the real estate process, allowing the broker to focus on their client’s needs.
The ability to match the right tenant with your client’s needs is crucial to the success of a development. And, while every landlord - and every deal - is unique, organizations with a combination of strong finances, a proven track record, and excellent leadership can be a sound addition to any tenant mix. To find out more about Primrose Schools and how we add value as a tenant, visit PrimroseSchoolsRealEstate.com.
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