Choosing the right retail space for your business is one of the most important decisions you’ll make. The location you select will have a major impact on your success and growth potential. A well-chosen retail space in the perfect location allows easy access for customers and high visibility, while an unsuitable location can harm sales and limit growth. Here are some guidelines to help you pick a retail space that will enable your business to thrive.
Determine Your Required Size
Assess how much space you need for your retail inventory, customer traffic, and sales staff. Keep future growth in mind but avoid paying for more space than you need currently. Look for ways to optimize even a small area, including efficient shelving, multi-level displays, and portable fixtures. For most retailers, a space between 800 to 2,500 square feet is ideal. However, boutiques can do well with 500 to 1,000 square feet while large furniture stores may require 5,000 square feet or more.
Examine The Competition And Customer Demographics
Study the competition around each retail space you evaluate. Are there too many similar businesses that will saturate the market or do competitors validate that it’s a viable location? Consider if your target customers live, work, or shop nearby. Look at household incomes, traffic patterns, and if the area is growing residentially or commercially. This helps determine if a location aligns well with your brand and can sustain your business long-term.
Seek Visibility And Accessibility
Visibility from roads and walkways is key for most retailers. Look for retail spaces with prominent signage, window displays, and an inviting facade. Consider conveniences like nearby parking and public transit stops which make a location more accessible to customers. Busy pedestrian traffic areas in shopping districts are ideal for clothing, specialty, and dining retailers while spaces are easily accessible by vehicle-suit retailers like supermarkets, pharmacies, and home goods stores.
Evaluate Key Features Of The Physical Space
Once you’ve determined a location, evaluate specific retail spaces that meet your size, budget, and area requirements. Check that the layout enables an efficient workflow and accommodates any necessary equipment. Look for spaces with lots of natural light, adequate electrical systems, and utility access as these minimize additional build-out costs. Consider flow patterns, focal points for product displays, and register locations that maximize impulse purchases. Amenities such as storage spaces, dressing rooms, or customer lounge areas enhance the experience for some retailers.
Flexibility And Future Growth
Choose a retail space for lease in Tempe that allows some flexibility in how you design the floor plan and utilize the square footage. Spaces that enable future expansion, open to adjacent available spaces, or with options to move interior walls are ideal. They allow your business to grow in place rather than requiring an early move to larger premises.
Negotiating The Retail Lease
Once you find a desirable retail space, it’s time to negotiate the lease which commits you to rent payments and facility responsibilities for a set period, typically 3 to 10 years. Work with a real estate lawyer to review lease terms before signing to get the best possible deal. Look for provisions that provide some flexibility such as short-term renewal options in case you need to move earlier or subletting conditions if extra space becomes unnecessary.
To Wrap Up
Choosing a retail space requires balancing many priorities to find a location that matches your budget, supports your operational needs, and suits your brand and target customers. With careful evaluation of spaces based on key factors like size, visibility, competition, flexibility for growth, and lease negotiations, you’ll find a premise positioned for your business to thrive.
