There are many factors that must be carefully considered prior to selecting a retail location.
First, the amount of space that will be required and the build-out necessary to do business must be determined. The immediate need for space may change significantly in the first five years and could make business growth difficult.
Next, consideration must be given to neighboring businesses, so that customers for one are candidates for the other. For instance, you wouldn’t want to put your new restaurant right next to a mechanic.
Ease of access to the business is another important consideration. Some locations are accessible on only one side of the street, which can discourage potential customers. Urban locales have very limited or difficult parking which can present customer barriers, and parking capacity should also be considered. Locations with high car traffic might have low foot traffic.
Should you choose a free standing location versus a strip center or mall location? It’s important for certain businesses to be located in one or the other.
Finally, the amount of rent to be paid is crucial, since the business must reach a minimum level of sales volume to support rent and still produce profit.
When searching for retail space, you’ll find a wide range of property types and locations. Look for thriving retail properties and find out why they succeeded. Remember the old adage: “Location, location, location”!