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Real Estate Taxes
Retail properties, including strip centers, store fronts and large and small shopping centers can be expensive to own and operate. The largest components of operating retail operations are the cost of real estate taxes, debt serves, and repairs/maintenance. In the last few years, retail centers have experienced more vacancies as the internet has allowed potential purchasers the ability to buy and sell their merchandise online and remotely from anywhere in the world. Tenants, because of E-Commerce, realize that they do not have to pay high NNN rental rates. They can conduct business anywhere with a website. You can work from your kitchen, at home, just like ordering an item(s) from Amazon. Some businesses do not need a brick-and-mortar location to conduct business. This E-commerce has closed mom and pop stores as well as some of the giants in the retail industry. Physical locations are not that important. Save the cost of high NNN rental rates by selling and buying from your kitchen table, in your home. This electronic retailing has made locations obsolete and not so important anymore. his type of commerce has created much higher vacancies at store locations. Owners of retail properties are struggling to pay their rent without the sales revenue to support it.

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