Buy the property. Understand the investment.

Define the acquisition mandate

Before comparing properties, decide what you can own and operate. A stabilized neighbourhood plaza, an unanchored strip mall and a shopping centre with repositioning potential are different commitments. Define geographic focus, tenant concentration tolerance, management resources and capital needs.

Read the leases before the rent roll

A rent roll is a summary, not the governing agreement. Review each executed lease and amendment, remaining term, options, guarantees, assignment rights and recovery provisions. Reconcile reported income to supporting records and identify concessions, arrears and owner obligations.

• Tenant covenant and guarantor obligations.
• Anchor, exclusivity, use restrictions and co-tenancy clauses.
• Renewal options, termination rights and near-term expiries.
• Expense caps, excluded costs and landlord repair obligations.

Understand the property beyond the income

Parking, visibility, access, loading and site circulation can influence how retailers operate. Building systems, roofs and paving may carry significant obligations. Environmental and title review should be led by qualified professionals, with appropriate follow-up where issues arise.

• Building condition and deferred maintenance.
• Environmental reports, prior uses and recommended investigations.
• Easements, shared access, reciprocal agreements and survey matters.
• Property tax assessments, utilities and service contracts.

Verify zoning and redevelopment assumptions

An attractive location does not establish development rights. Confirm official-plan designations, zoning, permitted uses, setbacks, servicing and approval requirements with the municipality and a planning professional. Existing tenants and recorded rights may constrain any future plan.

Coordinate financing and transaction conditions

Lenders assess the borrower, property cash flow, tenant strength and their own underwriting requirements. Financing availability and terms must be established with the appropriate lender or financing professional. Align due diligence, legal review and financing with the purchase agreement; do not treat a conditional offer as a completed acquisition.

Plan for ownership, not only closing

Consider property management, tenant communication, insurance, maintenance responsibilities and document transfer before closing. Cash-flow projections should distinguish contractual income from assumptions and account for vacancy, capital work and ongoing owner obligations.