Though e-Commerce and mobile sales are growing fast, a number of entrepreneurs have become succeed in opening up many traditional brick and mortar stores. The reason behind this success can be a great retail space. It does not matter how good your business or product is, you cannot make any sale if customers do not access your store.
Either your store is a primary location for your business or an ad line for online operations; retail entrepreneurs recommend some tips if you are searching for a commercial space to rent out.
What Type of Space Do You Need?
While looking into commercial real estate, there are few options for you, which are all dependent on your business type and budget. Small business, having limited inventory could be opened in kiosks. On the other hand, big might prefer large spots like strip malls or shopping centers, or even a single building, if they are able to afford. A serial entrepreneur, Nicole Bandklayder operates two retail businesses, has advised business owners to consider their business size and budget while thinking about a space they require.
Mallory Thorburn, the owner of a bridal boutique “The White Magnolia” from Greenville and Atlanta, South Carolina, advised to think about the future expansion requirements.
Thorburn said, “the most important factor is a square footage”. Of course, you want to ensure that the space is not only enough to accommodate your needs, but it has the ability to expand the space when your business expands. David Wolfe, an online mattress company has opened a retail location, and said, you should think that how you can arrange the potential space to display your brand.
How to Choose the Location?
Now you have decided what type of space you want. The next step is to find it in the right location. Wolfe reminded the business owners that the most important considerations while choosing the location are demography of the area and foot traffic. So do your research on the foot traffic and then decide.
The question arises, how many people walk on the place on a daily basis? The owner of the space can give you this information. It is also helpful if you ask the surrounding stores just to be safe. Now the last step is to consider signing a contract or lease. If you are going to set up in a single building or shopping mall, it is important to think about the parking facility as well. This is a minor factor, but parking issues can discourage your customers.
Finally, Understand Your Contract or Lease
Suppose, you have your dream location. Review your lease or contract before you sign it. Many commercial spaces ask for at least 5 year lease. This is a huge commitment at the initial stage.
If the building is privately owned, you can have more lease term flexibility. If you get stuck if a longer term, ensure that there is flexibility that you may sublet.
There are also some hidden costs that don’t state up front, i.e. the property management fee, insurance, area maintenance, etc. can also create issues. These can add up to the monthly expenses. Before engaging in a lease get a clear understanding of all these costs.