what is an outparcel in commercial real estate

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A pad site or outparcel is afreestanding parcelof commercial real estate located in the front of a larger shopping center or strip mall. ?Pad sites usually range between 2,000 and 75,000 square feet (190 and 6,970 m 2). They can be ground leased by developers or purchased outright.

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  • What does outparcel mean in real estate?

  • outparcel (1) A small lot at the outer edge of a shopping center, usually reserved for later sale to a fast-food outlet or chain restaurant; also called a pad site. Many important mall tenants will reserve some control over outparcel development by virtue of agreements in their operating and easement agreement with the mall owner.

  • What is an outparcel in a shopping center?

  • (1) A small lot at the outer edge of a shopping center, usually reserved for later sale to a fast-food outlet or chain restaurant; also called a pad site. Many important mall tenants will reserve some control over outparcel development by virtue of agreements in their operating and easement agreement with the mall owner.

  • How do mall tenants control outparcel development?

  • Many important mall tenants will reserve some control over outparcel development by virtue of agreements in their operating and easement agreement with the mall owner. (2) A small lot the original developer could not obtain when purchasing a large site for a shopping center.

  • Why invest in commercial real estate?

  • Increasing Value: Commercial real estate is valued on a metric called Net Operating Income, which is calculated as the property income less expenses. Whether developing, selling, or leasing pad sites, the net result is the same, increased Net Operating Income, which leads to increased property values and solid returns for our investors.

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