Choosing the Right Location for Your Retail Property

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Now is a great time to expand your business due to low prices and high inventory, but there are many factors that must be carefully considered prior to selecting a new 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 vs. strip center or mall location? It is 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 will 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”!

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6 Responses to “Choosing the Right Location for Your Retail Property”

  1. Arthur Harris Says:

    Great article Dan, thanks for making it seem so simple. It all comes back to location,location,location.

  2. Deborah C. Taylor Says:

    Thanks Dan!

  3. Christina Poodt Says:

    Hi Dan, thanks for good article. I found out first hand how important Location Location Location was when we owned and operated a retail establishment for fifteen years! When we expanded, we pretty quickly realized that some worked and others did not! And it usually always came down to Location, Location . . . . Well, you get my drift!!!

    So now is a Great time to find new Locations for businesses who are growing, right?

  4. Britt Argo Says:

    Thanks Dan. It’s true. As consumers, we decide on stopping at one business or strip mall based on our easy we can pull in and out and available parking. I know I opt out of some restaurants or grocery stores closer to my house because of those hassles. Potential Buyers looking for retail space would definitely benefit from considering the space as a customer would.

  5. Francine Henderson Says:

    As a former small business owner I know this is so true. Thanks, Dan!

  6. Judy Levy Says:

    Good article Dan you are so right about right of access, I know off two failed restaurant in the same location and I truely believe its because you can only access it from one side of the street, I know it detered me many times.

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