Retail Real Estate

Retail Real Estate

Retail real estateIf you own any type of business where you sell goods to consumers, then you will at some point be in the market to buy or lease retail real estate. While the world of brick-and-mortar retail space has seen many challenges with the rise of online shopping, it’s still one of the most popular investment sectors in all of commercial real estate. Whether at the height of the market, or at the bottom, this sector isn’t going anywhere.

If you’re in the market for retail real estate in Hattiesburg, or any market for that matter, than you know how important it is to choose the right location. The location can most literally make – or break – your business. Whether located in freestanding buildings, malls, strip centers, airports, lobbies, mixed-use facilities or downtown shopping districts, below we outline the top factors to consider for retail space site selection.

Location! Location! Location!

No doubt you’ve heard this old real estate adage before. But, there is no commercial sector where this is truer than in retail real estate. To ensure maximum returns, there are many factors to consider when searching for the best location for your retail business. And while there is no “one size fits all” rule since each retail business has its own set of needs and requirements, below we outline the more important considerations when choosing retail space.

  • Demographics: Your “best” retail real estate location will be where your customers are located, hence understanding demographics. Who is your customer? What is their age, income? When choosing an asset, you will want to find space that’s located in densely populated areas. These areas should be both business and economically diverse. Not only do you want to know this information for present day, but also for years to come. Because, a typical retail space lease agreement can range from 5 to 10 years. A good tip to becoming familiar with any future area growth and development plans is by becoming familiar with your local business development board.
  • Proximity: One of the most important things to know about a potential retail real estate is its traffic drivers. These could be being close to big box anchors, popular restaurants, universities and sporting/event arenas. Pay particular attention to where your customers are coming from. Also, while it may seem counterintuitive, it can actually be beneficial to be located near competition. Since shoppers love options, you can capitalize off of existing foot traffic. Complementary retailers are also important traffic generators. So, make sure to pay attention to who is around you and how they can benefit your business.
  • Accessibility and Parking: Finding a location with amazing demographics and proximity to traffic generators means nothing if it’s not easily accessible and offers ample parking. When deciding on retail space, search for properties that offer easy, uninhibited ingress/egress and are located near major intersections, highways and public transportation hubs. You also want to ensure that you have ample parking to support your customers. Some businesses require a high amount of parking, some only two or three designated spaces. Understanding your parking ratio prior to signing a purchase or lease agreement will save you in the long run.

Always Use an Expert

If you are in the market to buy or lease retail real estate, make sure to cover all your bases and use a professional SVN commercial real estate Advisor. Not only are they versed on all of the important location factors that affect your retail business; they have access to the most comprehensive listing database available in your market. This helps you find you retail space you would not have been able to on your own. Additionally, it’s our strongest recommendation that you never sign any legally binding purchase or lease agreement without consulting a professional broker and/or attorney. If you want to talk with one of our retail space experts, contact us today.