Retail Space For Lease
A Beginner’s Guide On How To Find Retail Space For Lease
Leasing retail space can be a challenging and stressful task when you are beginning a business or relocating an existing company. To effectively find retail space, you will need to estimate how much you can afford and then locate properties within this price range. It is also important that you understand the lease contract terms before negotiating them. This article will provide information for beginners on how to find retail space for lease.
1. Finding The Retail Space For Lease
The first step to finding a retail space for lease is to determine the amount of space you need. You can estimate the floor space needs by using a simple rule-of-thumb calculation where you divide the sales volume by sales per square foot. An average retail sales per square foot amount can be located at a calculator website. Typically, needs will vary according to the business, but the average business will need a sales floor with a stockroom, offices, and bathrooms.
Once you had identified the amount of space required, it is necessary to estimate the amount of space you can afford. If the company already exists, it is recommended that you review its financial performance and draft a budget from this documentation. If you have not yet started a company, you will need to estimate how much money is in the budget for the retail space.
The physical search for the retail space can be conducted after a budget has been drafted. By having a budget, you will be able to approach the task knowing what is and what is not affordable. One of the best places to search for property is online using websites such as Loopnet.com. It is recommended that you filter the property search to make the search simpler or easier to manage. Filters can be set on different websites according to property types, location, lease rate, and retail property space size.
While most people will opt for online services to find a property, it is also possible to use traditional print advertisements to find a retail space for lease. Many commercial landlords who indulge in purchase or disposal of multifamily properties and leasing continue to advertise their properties in the classifieds section of the newspaper. Of course, it is recommended that when a landlord advertises in the newspaper and has a website that you review the website for other properties that may be available.
2. Assessing The Retail Space
When assessing the retail space, it is important that you first check the property’s rental rate. The typical rent for commercial retail space is calculated via square foot or using a percentage of the company’s gross sales. This means that rental rates can range from several dollars per square foot to 5% of gross sales. Rental rates should be provided in the advertisements and you should speak with the landlord or management office regarding this issue.
Rental rates are not the only issue to consider when assessing a retail space for lease. Another issue that needs to be examined is the crime rate in the area. Businesses in safe areas are more successful; therefore, it is necessary to check the crime statistics for the area using the internet.
Contrary to popular belief, successful companies are located near their rivals and you should try to find a retail space near businesses similar to your own. The advantage of being near competitors is that the people walking past your space are interested in the products you are selling; therefore, you are guaranteed foot traffic. Of course, you do not want to be too close to rival businesses as it will make it difficult to distinguish your identity and the public may already be loyal to existing companies.
When a person goes shopping, they will typically stop at several different stores; therefore, it is recommended that you seek out complementary businesses when assessing the retail space for rent. For example, if you are a clothing store it may be beneficial to place yourself near a restaurant or coffee shop. The complementary company should target your same customer demographic, but it is not ideal to be located near a bar as this can be noisy and unpleasant.
It is also important to check the proximity of public transport to your space when assessing a retail area for lease. Many people think that being close to public transport will be beneficial, but you need to consider that being too close to public transportation can be a problem if you are a high-end boutique. Higher-income customers will typically drive and being in that location will not attract the correct type of foot traffic.
As can be seen, there are several considerations that need to be taken into account when finding the best retail space to lease. Using the information above you can find the best space for your specific situation. You can find commercial real estate in Dayton, Ohio easily.