The Fort #354 - Don Tepman (@StripMallGuy) - Strip Malls, Creating Value, Leasing Strategy, X/Twitter, Charlie Munger
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May 21, 2024 
Real estate fund manager, Don Tepman, shares insights on successful strip mall acquisitions, tenant mixes, drive-thrus, market entry, and leasing strategies. He also discusses the future of his 'StripMallGuy' brand and his memorable meeting with Charlie Munger.
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Dynamics of Suburban Retail
- The fundamental dynamics of suburban retail, such as parking, signage, and co-tenancy, remain consistent over time.
- The same strategies used for strip mall acquisitions in the past can still be effective today.
Strip Mall Acquisition Strategy
- Look for inefficiencies in strip malls and address them, like vacancy or gaps between market rent and actual rent.
- Aim for tenants who can comfortably pay market rent, ensuring a win-win situation.
Below Market Rents
- Don Tepman shares a story about a strip mall in Tracy, California, where rents were significantly below market value.
- By raising rents to market rates and offering longer leases, he achieved profitability while maintaining tenant satisfaction.