Sell your shopping center
Anchored or unanchored, leased or half-empty, with a dark box or a dry cleaner in the chain of title. We buy strip retail as it is.
Shopping Center at a glance
- Typical deal size
- $2M – $25M
- Lease structure
- NNN, with CAM reconciliation
- Typical term
- 3–10 years, staggered by tenant
- Escalations
- 2–3% annually, or 10% every 5 years
Overview
What shopping centers are really worth
Our read
A shopping center is the most management-intensive asset most owners will ever hold. It is not one lease, it is fifteen — each with its own expiration, its own escalation schedule, its own set of exclusives, and its own operator whose business may or may not survive the next three years. That complexity is exactly why centers trade at wider cap rates than single-tenant net lease, and it is also why they are frequently mispriced in both directions.
The centers that hold value are anchored by uses the internet cannot take. Hair and nails, dental and orthodontic, insurance and tax prep, a regional QSR with a drive-thru — these are service businesses that need a physical location within a few miles of their customers. A center full of them is far more durable than its lease terms suggest.
What kills value is concentration risk that nobody priced. One anchor carrying 40% of income with co-tenancy clauses attached to it. A rollover schedule where six leases expire in the same twelve months. An occupancy cost ratio that looks fine on paper until you learn what the tenants are actually selling.
Valuation
How we underwrite it
The method
We underwrite a center suite by suite rather than applying one cap rate to a blended NOI. Each tenant gets a realistic renewal probability, a market rent, and a downtime assumption if it rolls. National and franchised credit gets underwritten differently from a local operator on their second location, because the risk genuinely is different.
From there, the capital stack matters more than in most asset classes. Roof, parking lot, HVAC units, and any pylon sign work get priced as near-term spend rather than deferred indefinitely. Deferred capital in strip retail has a habit of arriving all at once.
The adjustment that surprises sellers most is the treatment of below-market renewal options. An option at a fixed rate ten years old is not a lease at today's rent — it is a call the tenant will exercise, and it caps your upside on that suite for the length of the option. We price the option, not the current rent.
What we do not do is require the center to be stabilized first. Vacancy, a dark anchor, and pending co-tenancy triggers are underwriting problems, not disqualifiers.
What moves the number
- 01Anchored versus unanchored — a grocery or national anchor changes both the cap rate and the lender pool
- 02Tenant credit mix, and specifically what share of income comes from national or franchised credit versus local operators
- 03Weighted average lease term and, more importantly, whether the rollover is staggered or stacked in one year
- 04Occupancy cost ratio — if tenants are paying more than roughly 10-12% of sales in rent, renewals are at risk regardless of what the lease says
- 05Small-shop vacancy versus anchor vacancy, which are different risks priced very differently
- 06Visibility, curb cuts, and parking ratio, which determine what a replacement tenant will pay
Capital markets today
- 10-yr Treasury
- 5.24%
- 4.12% a year ago
- SOFR
- 3.87%
- 4.2% a year ago
- 30-yr mortgage
- 7.28%
- 6.3% a year ago
- CRE loan delinquency
- 1.53%
- 1.57% a year ago
- CRE prices, YoY
- 6.58%
- -2.7% a year ago
Sources: FRED DGS10, 2026-10-01 · FRED SOFR, 2026-10-01 · FRED MORTGAGE30US, 2026-10-01 · FRED DRCRELEXFACBS, 2026-04-01 · FRED COMREPUSQ159N, 2026-01-01
Diligence
What a buyer actually looks at in a shopping center
- Check 01
Rent roll and full lease abstracts
Small-shop leases are where the surprises live — free rent, unrecorded amendments, and options at below-market rates that never show on a rent roll.
- Check 02
CAM reconciliation history
Under-recovered CAM is a silent haircut to NOI. Three years of reconciliations tells you what the center actually nets, not what the rent roll implies.
- Check 03
Co-tenancy and exclusive-use clauses
An anchor going dark can let half the small shops cut rent or walk. Exclusives can also make a vacant suite unleasable to the obvious replacement tenant.
- Check 04
Roof and parking lot condition
These are the two largest capital items in a center and they tend to come due together. A roof at end of life is a six-figure adjustment.
- Check 05
Environmental — dry cleaner and gas history
A former dry cleaner in an inline suite is the single most common environmental problem in strip retail, and PCE plumes are expensive and slow.
- Check 06
Tenant estoppels
The only way to confirm the lease terms the seller represents are the terms the tenant believes it has.
Backfill risk
What happens if the tenant leaves
The tenant-goes-dark scenario
Small-shop space in a well-located center re-leases reliably, but it takes time and it costs money — expect several months of downtime plus tenant improvement dollars and a leasing commission on every suite. That is the normal cost of doing business in strip retail and it should be underwritten, not treated as a surprise.
Anchor vacancy is a different animal. A dark anchor does not just remove its own rent; it can trigger co-tenancy clauses that let inline tenants reduce rent or terminate, and it removes the traffic the small shops were paying for. A center that loses its anchor can see NOI fall by considerably more than the anchor's rent line.
The centers that hold value are the ones where the small-shop tenants are service businesses — hair, nails, dental, insurance, tax prep — because those are the uses that neither e-commerce nor a national credit tenant can replace.
Why this matters to you
Every buyer prices the tenant-goes-dark scenario, whether or not they say so out loud. It is the largest hidden input into the cap rate you get offered.
Understanding it before you go to market is the difference between negotiating and being negotiated with.
Who sells to us
Situations we see most often
- Partnership dissolution or an estate that needs a clean division
- Loan maturing into a rate environment that does not support a refinance
- An anchor has gone dark and the co-tenancy clauses are about to trigger
- Out-of-state owner tired of managing small-shop turnover and CAM disputes
- Deferred capital — roof and parking lot both due at once
Buy box
What we buy
- 01Anchored and unanchored centers, $2M to $25M
- 02Vacancy is fine — we underwrite the lease-up rather than requiring it done
- 03Dark anchors and pending co-tenancy triggers welcome
- 04Deferred roof and parking capital priced in, not used to retrade
Process
How selling to Dizposition works
Day 0
01Send us the property
Address, asset type, and the lease if there is one. That is enough for us to start.
- 02
We underwrite it
Our underwriting runs the income against current market pricing and the cost of capital. No lowball anchor.
10 minutes
03You get a firm offer
In 10 minutes, with the math shown. You will know exactly how we got there.
As fast as 30 days
04Close on your timeline
As fast as 30 days, or as slow as you need. We are the principal, so the date is yours.
FAQ
Selling a shopping center
My anchor just went dark. Is the center still sellable?
Yes, and this is one of the more common reasons owners call us. A dark anchor changes the price, not the salability. The questions we work through are whether the anchor is still paying rent, what the co-tenancy clauses actually permit, and what the box can be re-tenanted or subdivided for. A conventional buyer usually walks at this point because their lender does.
Half my small shops are month-to-month. Does that hurt the value?
It lowers it relative to a fully-leased center, but far less than owners expect. Month-to-month service tenants in a good location tend to stay for years. We underwrite the realistic renewal probability rather than treating anything without term as vacant.
There was a dry cleaner in one of the suites. Does that kill the deal?
No. Send it. Dry cleaner solvent history is common in strip retail and it is one of the main reasons conventional sales fall apart at the Phase II. We price remediation and the residual liability into the offer rather than walking.
Do I need to settle the CAM reconciliation before selling?
No, but you should expect it to come up in diligence. Under-recovered CAM reduces the NOI we underwrite. If there are open disputes with tenants, tell us early — they are much cheaper to price in than to discover.
How long does it take to sell a commercial property to Dizposition?
You get a firm written offer within 10 minutes of sending us the property. If you accept, you can close in as little as 30 days — most of that is title work and your own timeline. There is no listing period, no marketing, and no waiting on a buyer's financing contingency.
Can I sell my property as-is?
Yes. We are the buyer, so there is no lender requiring repairs and no inspection contingency to renegotiate against you. Deferred maintenance, a failing roof, an aging tank system — we price it into the offer rather than asking you to fix it first.
Can I sell with a tenant in place?
Yes, and in most cases a tenant makes the property more valuable to us, not less. We will ask for the lease, a rent roll, and any estoppel certificates. You do not need to deliver the property vacant.
What if my lease is short-term or about to expire?
Short remaining term is one of the main reasons owners come to us. A conventional buyer needs lease term to get financing, which is why short-dated assets sit on the market. We underwrite the real estate and the backfill prospects rather than the remaining term alone.
What if the property is vacant?
We buy vacant assets. Pricing shifts from an income approach to what the building and land are worth to the next user, which is a different calculation — but it is one we do routinely rather than one that disqualifies the property.
Do I need a broker to sell to you?
No. We buy directly, and there is no commission because there is nothing to market. If you already have a broker, we will pay them. Selling without one saves the commission, but you should understand you are also giving up price discovery — a broker's job is to find out whether someone will pay more than we will.
What documents do I need to get an offer?
The address and the lease are enough to start. To finalize, we will want the rent roll, the last two years of operating statements, the title commitment, any existing survey, and any environmental reports you already have. You do not need an appraisal or a broker package.
How do you determine your offer?
We underwrite in-place income against what the space would re-lease for, adjust for capital needs and any environmental tail, and apply a cap rate supported by comparable transactions. We show you the inputs. If you disagree with an assumption, we would rather argue about the assumption than about the number.
What are typical seller closing costs?
Title and escrow fees, any transfer or recording tax owed in your state, prorated property taxes, and payoff of any existing debt. Because we are the buyer, there is no commission and no marketing cost. Transfer tax varies significantly by state and is often the largest single line.
Will I owe capital gains tax when I sell?
Usually yes, on the gain above your adjusted basis, and depreciation recapture is taxed separately from appreciation. State treatment varies. This is a question for your CPA before you sign, not after — the structure of the sale can change the answer.
Can I do a 1031 exchange?
Yes. A 1031 exchange lets you defer federal capital gains by reinvesting in like-kind property, subject to a 45-day identification window and a 180-day closing window from the date you sell. You must have a qualified intermediary in place before closing — it cannot be arranged afterward. Most states conform to federal treatment, but a few do not.
Can I sell if I am behind on payments or facing foreclosure?
Yes, and speed is the reason to move early rather than late. We can close on a defined date, which is what a lender or a receiver generally needs to see. Send us the payoff figure and any notices you have received.
Can I sell a property I inherited or that is in probate?
Yes. Probate sales take longer because the court timeline governs, not ours, and multiple heirs need to agree on the price before anything can close. We are used to working around both. Inherited property also generally receives a stepped-up basis, which can change the tax math substantially.
Is there any cost or obligation to get an offer?
None. There is no fee, no listing agreement, and no obligation to accept. If our number does not work for you, you keep the underwriting we showed you and we part ways.
Markets
Top markets we buy shopping centers in
Browse by state
50 state markets
- Arizona
- Texas
- Florida
- Alabama
- Alaska
- Arkansas
- California
- Colorado
- Connecticut
- Delaware
- Georgia
- Hawaii
- Idaho
- Illinois
- Indiana
- Iowa
- Kansas
- Kentucky
- Louisiana
- Maine
- Maryland
- Massachusetts
- Michigan
- Minnesota
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Ohio
- Oklahoma
- Oregon
- Pennsylvania
- Rhode Island
- South Carolina
- South Dakota
- Tennessee
- Utah
- Vermont
- Virginia
- Washington
- West Virginia
- Wisconsin
- Wyoming
Other property types
- Gas Stations & Convenience Stores
- Warehouses & Distribution Facilities
- Car Washes
- Storage Facilities
- Industrial Outdoor Storage Facilities
- Manufacturing & Logistics Facilities
- Office Buildings
- Medical Offices
- Hotels & Motels
- Marinas
- Multifamily Properties
- Assisted Living Facilities
- RV & Mobile Home Parks
- Parking Garages & Lots
- Campgrounds
- Billboards
- Cell Towers
- Churches
- Funeral Homes
- Commercial Land
- Farms & Ranches
- Resorts & Retreats
- Auto Collision & Repair Shops
- Auto Parts Stores
- Oil Change & Lube Centers
- Truck Stops
- Grocery Stores
- Drive-Thru & Casual Dining Buildings
- Coffee Shops
- Liquor Stores
- Pharmacies
- Dispensaries
- Urgent Care Centers
- Veterinary Clinics
- Dialysis Centers
- Dollar Stores
- Cell Phone Stores
- Early Education Centers
- Private & Charter Schools
- Bank Branches
- Movie Theatres
- Pawn Shops & Check Cashing Stores
- Data Centers & Battery Farms
- Post Offices
- Government Buildings
- Auto Dealerships
- EV Charging Stations
- Hospitals & Surgery Centers
- Gyms & Fitness Centers
10-minute offer
Ready to sell your shopping center?
Send us the property and the lease. You'll have a firm offer, with the math shown, in 10 minutes.


