The FORT Podcast: Vince Knipp – Senior MD Investments at Marcus Millichap – Single Tenant Retail NNN Assets 101

Vincent Knipp is a Senior Managing Director of Investments in Marcus & Millichap’s Dallas office, where he specializes in net lease investment sales across the United States. Knipp has been the #1 Net Lease Agent in Texas and consistently ranks in the Top 10 Nationally within Marcus & Millichap’s National Retail Group. Over the course of his career, he has closed more than 350 transactions totaling nearly $1 billion in volume in 29 states.

On this episode, Chris and Vince discuss the market for single-tenant NNN assets, 1031’s, what makes a good investment in this asset class, what makes a great broker, and a lot more. Enjoy!

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(02:14) – Vince’s Upbringing and Early Career

(05:11) – What were your first years as a broker like?

(07:06) – What’s the mythical ‘database’ that all Marcus agents build?

(08:20) – What did Marcus teach you about making your first calls as a broker?

(10:19) – What makes great retail?

(12:47) – Why do you put all the multi-tenant buildings with your partner?

(15:33) – Who are the typical sellers you work with?

(19:56) – Who are the typical buyers you work with?

(21:32) – How do you value a property in a major metro vs. a smaller town?

(24:14) – In markets where rents are growing quickly, are there a lot of buyers who will buy on a 2 cap and wait it out?

(27:01) – Ground Leases vs. Fee Simple Deals

(29:04) – What usually happens when a tenant leaves their building?

(30:33) – Are all of these leases pretty much the same?

(32:51) – Percentage Rent Clauses

(33:54) – Rent-to-Sales Ratios

(36:44) – Why do people leave?

(38:02) – What other factors are there in leases that are desirable?

(39:54) – Why do sales go down and is it usually tenant-specific?

(41:33) – How much do you pay attention to the specific products your tenants sell?

(42:29) – Are there ever demands from tenants that they’ll only sign unless you agree to not sell the building?

(43:40) – How much does access matter to you, tenants and customers?

(43:35) – All-for-One, One-for-All Scenarios of Tenants

(46:26) – What are tenants requesting now that we’ve been through Covid?

(48:39) – Has the upsurge in drive-through changed things permanently?

(51:52) – Are cosmetic upgrades usually on the operator and not the landlord?

(53:24) – What do you tell people in a transaction that costs 2x more than replacement costs? 

(54:40) – Are there any up-and-coming tenants you have your eye on?

(56:05) – How do you conduct due diligence without ever seeing the property in person?

(57:48) – Do ghost kitchens make you nervous?

(58:51) – What’s your favorite deal you’ve ever done?

(1:01:51) – Will you do deals anywhere or are you only based in Texas?

(1:02:32) – Is there a reason you’ve stayed with Marcus for so long?

(1:04:17) – Is there a way to share information across all of Marcus’ agents?

(1:05:45) – Is there anything in the industry that still really excites you after being in it for 15 years?

(1:07:20) – Underwriting Deals with a Franchisee vs. a Franchiser

(1:09:16) – What can go wrong once you’re under contract?

(1:11:34) – How much volume are you expecting for the rest of 2021?

The Knipp Group Mailing list

(1:13:20) – How do you sell a ‘party center’ deal?

(1:15:31) – What advice would you give to people getting into the industry today?

The FORT is produced by Johnny Peterson & Straight Up Podcasts

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