Retail Spaces and Types

Retail spaces are commercial properties designed for businesses that engage in selling goods and services directly to consumers. There are various types of retail spaces, catering to different types of retail businesses:

  1. Street Retail: Ground-floor spaces along busy streets or avenues, offering direct visibility and foot traffic.

  2. Shopping Centers: Retail spaces located within shopping malls, plazas, or centers with shared common areas.

  3. Strip Malls: Rows of connected retail spaces with their own entrances and parking, often catering to convenience shopping.

  4. Free-Standing Retail: Standalone buildings designed for individual retailers, offering more autonomy and branding opportunities.

  5. Outlet Stores: Retail spaces that sell discounted products, often from well-known brands.

  6. Pop-Up Shops: Temporary retail spaces used for short-term promotions, events, or product launches.

Permissible Uses

Retail spaces are typically used for activities such as:

  • Selling products to consumers

  • Providing services directly to customers

  • Offering dining or entertainment experiences

  • Showcasing products and attracting foot traffic

Bringing a Retail Space to Market or Leasing

When offering or leasing a retail space, consider these essential steps:

  1. Property Assessment: Evaluate the property's location, visibility, foot traffic, and suitability for the intended retail use.

  2. Legal Compliance: Ensure the property adheres to local zoning and building codes for retail activities.

  3. Pricing Strategy: Determine competitive rental rates based on factors such as location, size, and market trends.

  4. Marketing Materials: Create appealing visuals, floor plans, and descriptions that highlight the space's features and benefits.

  5. Online Listings: List the property on commercial real estate platforms, emphasizing its unique selling points.

  6. Tenant Fit-Out: Consider the flexibility of the space for tenant customization and branding.

  7. Lease Agreement: Draft a lease agreement that outlines terms, responsibilities, and expectations of both parties.

Responsibilities for Utilities and Maintenance

The responsibilities for utilities and maintenance can vary based on lease agreements and property types.

  • Gross Lease: The landlord covers most costs, including utilities, maintenance, and common area expenses.

  • Modified Gross Lease: The tenant pays base rent plus a share of operating expenses like utilities, maintenance, and property taxes.

  • Triple Net (NNN) Lease: The tenant covers base rent plus property taxes, insurance, and common area maintenance.

Additional Considerations:

  1. Location: Proximity to target customers, foot traffic, and complementary businesses.

  2. Accessibility: Compliance with accessibility requirements for disabled individuals.

  3. Parking: Sufficient parking spaces for customers and employees.

  4. Visibility: Visibility from major roads or intersections to attract potential customers.

  5. Lease Term: Short-term or long-term lease based on the retailer's business model.

  6. Tenant Improvement Allowance: Consider allowances for tenants to customize the space to their branding and operational needs.

  7. Competition: Analysis of nearby competitors and the retail landscape.

  8. Marketing and Signage: Consider opportunities for branding, signage, and displays to attract customers.