For Gladstone Commercial Corp. (NASDQ: GOOD), a triple-net, single-tenant REIT, executing the proper due diligence on prospective tenants takes on great importance, according to David Gladstone, the company’s chairman and CEO.
“The tenant is everything for us,” he said during a video interview with REIT.com in New York at REITWeek 2012: NAREIT’s Investor Forum. “Most of our tenants are non-rated. As a result, we do a great deal of work. We go in as if we were lending them money or buying their business and do a deep dive into all their financials, projections. We interview the management, so we’re intimately involved with the tenant to make sure that the tenant is the right one for us.”
Out of its diversified portfolio, Gladstone is currently seeing strong returns from its industrial and commercial assets, according to the CEO.
“We like manufacturing companies,” Gladstone said. “We like anything to do with the wholesale retail area.”
Gladstone Commercial recently hired a new president, Robert Cutlip. Gladstone said Cutlip’s experience in the real estate industry should be a major asset to the company. Additionally, Gladstone said Cutlip should bring creativity to company.