Retail properties often have a diverse mix of tenants, including anchor tenants and smaller specialty stores.

Lenders evaluate the quality and stability of these tenants, lease structures, and lease terms, including percentage rent clauses.

The location of a retail property is critical. Properties in high-traffic areas with strong visibility and accessibility are more attractive to lenders.

The potential for foot traffic plays a significant role in financing decisions. Retail properties can be more sensitive to economic cycles and consumer spending patterns. Lenders consider the property's resilience to economic downturns and changes in consumer behavior when evaluating financing.

The sales performance of retail tenants can impact the financial stability of the property. Lenders may require sales data to assess tenant health and the property’s ability to generate consistent income.

Lenders evaluate the current and projected vacancy rates of retail properties, as well as the market’s ability to absorb vacant spaces. High vacancy rates can pose a risk to stable cash flows.

The presence of anchor tenants is often a significant factor in retail property financing. Anchor tenants attract customers and smaller retailers, enhancing the overall value and stability of the property.

The potential for adaptive reuse or redevelopment of retail properties can influence financing decisions. Properties that can be easily converted to other uses may be seen as less risky.