Selecting the right retail real estate location for your business is a critical decision for your success. While the thought of occupying a low rent retail space might be tempting, it isn’t always the best answer. There are several other factors that come into play when choosing retail real estate. Ask yourself these questions:
Does the retail real estate location meet your customer’s needs?
You know who your target client base is. Is the retail space located in an area with your ideal demographics? Here’s an example: Let’s say you are selling children’s clothing in a location near a retirement community. This location may make sense if you are marketing to seniors who want to buy gifts for their grandchildren. But is that enough to sustain and grow your business? It very well may be. But, you would also be wise to consider how close you are to family neighborhoods where parents who need baby clothes regularly are likely to frequent your store more often.
The best approach is to put yourself in your customer’s shoes. Would a particular retail real estate location be centrally located and easily accessible to your desired clientele?
How strict are the zoning laws?
Prior to signing a lease, conduct some due diligence on local zoning ordinances and laws that may impact everything from your signage to special events during off hours. These types of regulations often seek to create standards within the community, but they may also restrict your ability to promote your business.
What type of exposure does the site have?
Advertising for new customers is expensive. A great location with exposure to well-traveled highways and streets can save you marketing money. Location, location, location is just as applicable in retail real estate as it is in residential.
But what if your optimal site is not within your budget? Is it still possible to get the exposure you need even if you opt for a retail real estate location that is second best? Absolutely! There are always unique marketing strategies that can help you turn any location into an asset. A little creativity can go a long way.