creNerd | Real Estate Investor | Storyteller | CARW Past Chairman | Public Speaker | schmoldty |
Imagine you had a pontoon boat rental company in a vacation town. The entire summer is booked, no available rental slots. Most boats were reserved a year in advance by returning guests. It's great, but unfortunately you were not able to increase prices meaningfully because you committed to a rate reflective of the prior summer. It's fine - you are making money, but you are leaving profit on the table. An opportunity cost for locking up the potential of your fleet. Then, a cancellation. Your buddy says - "sorry to hear that", assuming it's a hardship. Oh contraire - this is an opportunity! You know there is demand for your party barge, and you can likely rent it for 20% more than the group who cancelled. This is how many Landlords to Big Lots feel right now.... Sure, it's going to take some effort - but it's an opportunity to add value and increase cash flow in a world where most retail portfolios have very little vacancy.
