About Leasing Retail Space

When starting a retail company there are many things to consider. Employees must be hired, inventory must be purchased, and potential customers must be identified. All of these are key considerations when a company looks to lease retail space. Research must be done before signing a lease, or the company might find a location that is not supportive of the retail business.

Significance

Leasing retail space for a company requires quite a bit of research. It is common knowledge that location is a key in retail, but that is not the only consideration a tenant has when they are looking for retail space to lease. A prospective tenant will also want to know of any special amenities the space includes such as the ability to expand, the demographics of an area, and any local laws that could limit hours of business or operating procedures.

Types

Retail space is available in many different types of buildings. There are freestanding buildings that are not attached to any other buildings and have their own parking. There also are shopping centers. Space in shopping center might include enclosed malls with limited entrances, or shopping centers where each store has an entrance from outside the building. Retail space is also available in downtown areas along main streets where no parking is available and sometimes office space or residential space is available on the second floor, those are known as storefront retail spaces.

Features

Retail space has aspects to it that enhance the appeal of the space to customers. Being visible from busy roadways is an important feature of a desirable retail space. It is also highly desired for retail spaces to include signage options either on the building or on a pole that can be seen by passing traffic. A retail space quite often will have a loading dock or drive in door for deliveries in the rear of the store from a supplier.

Considerations

Demographics are an important consideration for retailers. Demographic reports can tell a retailer how much the average family income is within either a one-, three- or five-mile radius from his location. Demographics also indicate if a region is seeing a population increase. Population increases can make leasing retail space in that area highly appealing as the customer base is increasing. Demographic reports can help tenants interested in leasing retail space find out how far away the average employee drives to work, this can help them determine if finding local employees will be feasible.

Geography

Location is definitely important in retail. Not just because when leasing retail space you want to be in a highly desirable area, but you also want to know what other companies are nearby. Some companies when leasing retail space wish to be at least five miles away from any of their known competitors. Others are confident in their product and want to compete and locate close to a competitor. Another aspect of location for retail companies that is important is if there are other retailers that sell complementary goods close to their location. Complementary goods are goods that work with the items the retailer is selling. As an example computer game store might want to be located near a store that sells computers but does not sell games themselves. Location is about more than the physical location, it is about the surrounding businesses for a retailer looking to lease space.