While these may not look like typical net-leased assets, their design and operations are almost identical to the usual freestanding single-tenant buildings so popular in today's investment market. As with any residential condo, the owner typically owns the area within each unit's walls, while the condo association maintains any common area outside that unit.
When investing in a retail condo, the buyer enjoys the passivity of a net lease, which translates to the tenant assuming all responsibility of payment of taxes, insurance and maintenance. Although the tenant assumes all responsibility from the lessor, the condo association generally alleviates the tenant of some maintenance and insurance responsibilities, which in turn favors both parties. The investor also gains a stable asset that can generally be re-tenanted without substantial retrofitting if the original tenant vacates.
Between the current economic slowdown and the high price of gasoline, the idea of live-work-play development has never been more appealing, driving demand for urban residential units while a ready supply of new condos await. The Tampa Bay market, which had nearly no urban residences four years ago, now boasts over 2,100 residential units.
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