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And he had a very small vacancy rate, on the order of Dachshund it’s the most wonderful time of the year shirt! Turnover of tenants and the resulting vacancy is what cuts into both the income stream as well as can cast a stigma on the strip center if the vacancy goes on too long. Potential tenants drive by and think, “that space has been vacant a long time, the center must not be very popular.” However, this strip center was in a choice location of this little town and tenants loved being there. To give you an idea, Radio Shack was a tenant. If a strip center attracts the larger national franchises, typically those franchisees have done their homework to pick a choice spot in town.
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I want my center to be popular in this Dachshund it’s the most wonderful time of the year shirt, and it is. If the business owners prosper, then I prosper. It’s a positive feedback cycle which gives me emotional satisfaction and not just financial rewards. Not to mention there is a lot of, let’s say, “gossip,” in a small town. It’s important to have a good reputation for being a responsible, fair and caring building owner, not a bad reputation, because then business owners will want to rent in your building. Sometimes for these small business owners, I’ve temporarily reduced their rent if they’ve had a personal crisis such as a spouse losing their job or a serious sickness in the family.