Before starting your retail business, you’ll need to make sure that it has a good location. For this purpose, you can work with the leasing representative of your landlord or a commercial real estate broker. You can even ask the other local business owners for some recommendations. There are several types of retail businesses that you might be interested in.
They include an enclosed shopping mall, a grocery store, an open-air shopping center, or a drug store. All these businesses have different requirements in terms of location. Here are a few things that a location must have for your retail business:
1. Accessibility of space
You must always go for a location that’s easier to access. People shouldn’t have any difficulty in finding your retail store or shopping center. Having a good amount of parking space in the front would be an advantage. How easily the vendors can deliver your inventory is also important. Let’s say you’re opening a furniture store. In this case you’ll need enough space for the trucks to park and move the items of furniture.
2. Availability of potential customers
Selecting a location where most of your target customers live or work is a great idea. For example, if you’re opening a store for kids’ toys, don’t choose a location full of college-going crowds. It just wouldn’t make sense. You must have a good amount of research on the demographics of the location.
See what’s the average vehicle and foot traffic in the area. Look for spots where you can attract the maximum number of passers-by during business hours.
3. The neighboring businesses
Having competing businesses can give you some headache, but those who are complementary can be good to have as neighbors. If your business is into aquarium supplies, you wouldn’t want another aquarium supplies store next to you.
Some businesses make huge profits due to their location near restaurants or entertainment venues. So, before opening your retail store, ask your landlord if there are any competing stores coming up nearby.
4. Move-in readiness
You’ll have certain retail spaces where you’ll not require significant modifications. Such spaces are ideal as they save you a lot of costs. The retail spaces that are not move-in ready would need modifications according to your business needs. They might involve adding walls or bringing down the existing ones, and rewiring the electrical system. This adds to your cost and you’ll also end up wasting some precious time.
5. Lease term
A shorter lease term is always beneficial if you’re starting a new business. It will give you more flexibility. Upon signing a longer lease term, you’ll lock in your rent. In case your business fails, you’ll find yourself in a pretty difficult situation. One disadvantage you have with a short lease term is that you’ll be vulnerable to a rent increase during renewal.
Retail leases can get a bit complex, so it’s better to consult an attorney to review the lease. This will give you a fair idea before you sign the documents.
6. Infrastructure
This is one aspect you must never ignore. Always look for the infrastructural facilities that are available for you. If you’re considering a building that’s a bit old, make sure there’s enough heating, cooling, internet, and other facilities. Among the other things to look for are the restroom facilities available for your customers and employees.