Factors To Think About When Leasing Retail Space

While commercial retail space may vary depending on the development, there are certain elements that potential tenants must consider when looking for new space.

Parking

You can modify many aspects of commercial space, including lighting, flooring, and wall color. Unfortunately, parking lots are a feature that cannot be changed or improved on.

Tenants often ask me about designated parking. Although some landlords may offer it, it is not often possible to enforce it. It's a good idea not to buy a parking space if it doesn't meet your retail customers' needs.

Another thing to think about is street access to the site. Finally, it is worth considering the inconvenience that customers might encounter when driving on or off the site.

Frontage

Retail tenants also have more parking requirements than other commercial tenancies. They also want frontage.

Retail spaces are generally built lower than a warehouse bay's depth. This allows for more foot traffic to be attracted to narrower real estate frontage.

Ideal retail spaces have the maximum number of windows allowed at the front. Sometimes, it is possible to add windows. However, this can be a costly decision. Therefore, it is best to narrow down your search to properties that won't require costly modifications.

You should also evaluate the signage opportunities in relation to street exposure and frontage. The space you have may be limited in terms of street-facing or front signage opportunities. It's not enough to properly advertise your business.

Zoning

Any municipality requires tenants to ensure that their intended use is allowed in the location they have chosen. For example, B zoning allows for most retail uses. However, it is important to check that the smaller houses along the streets are not also allowed. They could be zoned differently or have limited retail use.

Spot rezoning of retail properties is not something that happens often and can be difficult to obtain. Therefore, if you are considering purchasing a site with retail restrictions, it is probably not a good idea.

Contacting the city directly to find out which uses are allowed is the best way to do so. A good agent will also know which areas are suitable for retail.