But, there is some very valuable real estate with frontage on the main road. These tenants occupy the largest spaces and their rental payments may make up the bulk of the income for the property. The “inline space” (circled in blue) is set back from the main road and it houses the main or “anchor” tenants in the center, in this case Whole Foods and Nordstrom Rack. This aerial photo is fairly typical of a modern shopping center.
( NOTE : This is not a property in our portfolio it is for illustrative purposes only.) The picture below provides a good example of this. In addition, some properties contain “outparcels” or “pads” that are standalone sites upon which a customized space can be built and/or leased for a tenant. Typically, it is set back from the main road and has a large parking lot to accommodate visitors to the property. The main space, sometimes referred to as the “inline” space, makes up the bulk of the leasable square footage of the property. In a typical commercial retail property, there are two types of space. What is a Commercial Pad Site?Ī building lot adjacent to a mall or shopping center is called a pad site. If you are an accredited investor that would like to learn more about the commercial real estate investment opportunities we offer, click here. In this article, we’ll explain what a pad site in commercial real estate is, why they’re valuable, and what to consider about them.įNRP’s investment strategy is focused on a “value-add” approach. In our case, one of the ways that we like to maximize income and profits from an asset is through the use or development of “pad sites.” Property owners, who may be accountable to investors and shareholders, are always looking for ways to maximize an asset’s income and profits. Ideally, if they could, retail business owners would customize a space to their needs. The space may be too big, too small, not visible enough, or it may not have enough parking. Retail business owners looking for new locations sometimes find that the available space in a given market isn’t a good fit for their needs. When it comes to commercial real estate “pad sites,” the interests of retail tenants and property owners are aligned.
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