Retail presents an exciting challenge in the current market place for Landlords/Sellers and Tenants/Buyers. The retail market is vastly different from the office, Industrial and investment commercial markets.
Retail vacancy as a rule tends to be much lower than that of an office. Therefore, prices are typically higher.
One reason why vacancy is typically lower for Retail normally than that of Office is simply supply and demand. If you ever look at any city the first thing you see is office buildings taking up vast amounts of space. There are generally more office spaces for lease or sale than retail. Retail is more scarce and is location driven. All of this affects prices.
Retail tenants/buyers and owners/sellers nationwide can agree on one thing, “LOCATION, LOCATION, LOCATION!” is one of the most important factors that drives the majority of retail transactions. A good location or a sub-par location will determine the success or failure of many shopping centers and retail stores.
Typically the better the location, the higher the price.
What makes a good retail location?
Visibility to passing traffic is a big concern for retailers. Also does the site sit on the AM or PM side of the road?
Access to the site is also important. Is there a median in the middle of the road blocking left turns? Is the site at a stop light? Do you have to drive through another parcel to access the site?
Freedom Commercial has had the privilege of working with national big box retailers, local franchises, and local store owners. It is important when working on a transaction to have an agent with the ability, empathy and experience to catch on to the client’s vision and to add value by finding locations that may or may not be listed, help smoothly transition through each step of the process, and negotiate transactions to the client’s favor.