Pacwest Commercial Real Estate

Pacwest Commercial Real Estate Helping investors grow wealth & simplify 1031 Exchanges through smart CRE strategies.

07/06/2026

This is how I underwrite a Dollar General deal.

10 years or more on the lease?The buyer focuses on yield and stability.

6 to 8 years left?The buyers start asking harder questions.

5 years or less? The market demands a discount. That discount shows up as a higher cap rate and a lower price.

Cap rate and price are inverse. As one goes up, the other goes down.

This is why two Dollar Generals can look completely identical and trade very differently.

When you read an offering memorandum, focus on three numbers:
→ Years remaining on the lease
→ Current annual rent
→ Cap rate today

You cannot control whether Dollar General renews that lease. But you can control how much term you buy and what price you pay for that risk.

That’s the entire game.

Full episode: youtu.be/rj8fpIM9uho

Happy 4th of July from Pacwest Commercial Real Estate, Inc.Wishing you a safe and meaningful Independence Day filled wit...
07/04/2026

Happy 4th of July from Pacwest Commercial Real Estate, Inc.

Wishing you a safe and meaningful Independence Day filled with family, gratitude, and time to reflect on the freedoms we’re fortunate to enjoy.

From our team to yours, have a wonderful holiday.

I’m looking at three Dollar General properties right now.Same tenant. Same lease structure. Same general region of Texas...
07/02/2026

I’m looking at three Dollar General properties right now.

Same tenant. Same lease structure. Same general region of Texas. Built around the same time. Started with the same 15-year lease.

They’re trading at different cap rates.

Not because the buildings are different. Not because Dollar General has changed. Dollar General has been around since the early 1930s.

The reason is where each property sits on the lease timeline — and how close each buyer is to a renewal decision they don’t control.

In this week’s episode of Commercial Connections, I walk through all three properties with real numbers: Canyon Lake, Texas at a 6.5% cap with six years remaining. Liberty, Texas at 7% with a thinner buyer pool. Pointblank, Texas also around 7% — same structure, same question.

The framework I use to underwrite these deals:

10 years or more: focus on yield and stability
6 to 8 years: start asking harder questions
5 or less: the market demands a discount

And the three numbers I pull from every offering memorandum: years remaining on the lease, current annual rent, and cap rate today.

If you’re evaluating NNN properties right now, this one is worth 4 minutes of your time.

🎧 Listen here: youtu.be/rj8fpIM9uho

06/30/2026

This is where investors get trapped.

The deal looks attractive when they buy because the cap rate feels strong.

But a few years later, the lease is shorter, the buyer pool is smaller, and the pricing gets softer.

That's how a deal that looked good on day one becomes painful on exit.

Watch or listen to full Ep. 47 on Spotify, Apple Podcasts, or YouTube: https://youtu.be/4JKmLJ241dE

06/29/2026

This is the shift a lot of investors need to make.

You're not buying a promise that the tenant will renew.

You're buying an income stream for a set period of time.

That means the real question is not just what the cap rate is -- it's whether the price makes sense for the amount of lease term you're actually buying.

Watch or listen to full Ep. 47 on Spotify, Apple Podcasts, or YouTube: https://youtu.be/4JKmLJ241dE

06/28/2026

This is one of the biggest mistakes new triple net buyers make.

They see a higher cap rate and assume that means it's a better deal.

But a lot of the time, the market is quietly pricing in risk the buyer hasn't fully spotted yet.

That's why chasing yield without understanding the lease can get expensive fast.

Watch or listen to full Ep. 47 on Spotify, Apple Podcasts, or YouTube: https://youtu.be/4JKmLJ241dE

06/27/2026

It's not fixing things fast. It's not the newest appliances. It's communication.

Krystina from AG Property Management says they hear it all the time. Not "you fixed my issue in record time." But: "you actually got back to me. "Even something as simple as: "Hey, I don't have an answer yet, but I'll get back to you in a few hours. "That alone — just being kept in the loop — is what tenants respect most.

In a market where some management companies take three to five days to respond, that kind of communication isn't just nice It's the differentiator.

Watch the full episode: youtu.be/hPw0Qp9TYX0

06/26/2026

"Read the management agreement." Lea from AG Property Management says it twice — because she means it.

Owners come to them after switching companies, frustrated by what they call "hidden fees." But they're not hidden. They're in the management agreement. The one they signed. Without reading.

Renewal fees. Lease-up fees. Maintenance administration fees. A management proposal might show you one number. Your actual bill is something else.

Every management company operates differently. Some have in-house maintenance with admin charges on top. Some use third-party vendors. Some charge extra every time they lease a unit. You need to know which one you're working with before you sign.

Watch the full episode: youtu.be/hPw0Qp9TYX0

Most investors see a higher cap rate and assume they found a better deal.They haven't.A higher cap rate is often the mar...
06/25/2026

Most investors see a higher cap rate and assume they found a better deal.

They haven't.

A higher cap rate is often the market quietly telling you there's more risk than you've spotted yet.

In most cases, it comes down to lease term.

As the remaining term shortens, the buyer pool narrows. Financing gets more conservative. And pricing starts to move against you, not when you buy, but when you try to sell.

I've seen investors buy deals with six or seven years left, planning to hold for a few years. When they go to sell, they're left with a short-term asset and fewer buyers. That's where profit gets left on the table.

I've also had clients build entire retirement portfolios from short-term Dollar Generals, buying multiple properties at lower price points and holding through the decision window.That strategy can work. But only if you go in with a plan, not an assumption.

Triple net works when you align lease term, hold period, and exit from the beginning. You're not buying a guaranteed outcome. You're buying a fixed period of income.The question is whether the price reflects that timeline.

This week's episode covers the five warning signs to check on any offering, when a high cap rate actually makes sense, and the 60-second three-timeline test I run before advising on any deal.

🎧 Watch here: https://youtu.be/4JKmLJ241dE

06/25/2026

This is one of the most important truths in triple net investing.

A higher cap rate is not free money.

It usually means you’re taking on something:
shorter lease term, thinner market, more complexity, or more risk at exit.

The goal is not to find a deal with no risk.
The goal is to understand which risk you’re accepting and whether it fits your goals.

That mindset alone can change the quality of your decisions.

Want the full breakdown? Link in comments below 👇

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