There are several important factors to consider when you’re making decisions about retail site selection. Choosing the right location for new retail expansion is key to success. Location, location, location…As such, it’s vital that you understand all the factors involved.
The better you understand these important factors, the more likely you are to have a successful development site. We talked about five key factors in Part One that will help you narrow-down which cities and towns can be good fits for your business. Today in Part Two we’ll talk about five more factors that can help you choose the best site to build.
It’s vital that you consider the existing tenants surrounding a potential location for retail expansion. The neighboring businesses often have a profound effect on your success. You want to locate where surrounding tenants are drawing consumers already. The quality of the real estate around the site should be compatible with the use as well. Buildings with a lot of swag and national brands probably wouldn’t be a good co-tenant with a vape shop or a tattoo parlor.
Proximity to Competitors
Some would think that locating too close or adjacent to a competitor would not work. But it wouldn’t take you long to disprove that miss-conception. I was doing work for a national QSR looking at sites in an urban area and lo and behold every site they wanted to see already had a McDonalds near or on the opposing corner. This really excited the franchisee as he wanted to be as close the big boys as possible.
Getting information on traffic counts for any given location is pretty easy. Just make sure the counts you get are current. Every retailer wants the same thing, accessibility and visibility. The object is the more traffic the better, but consider access, and turning movements and ease of exiting your location back to the main traffic corridor. Lots of cities are designing boulevard style streets with medians and landscaping. Right in and right out only turning movements are a requirement in lots of urban and suburban settings. Just make sure the due diligence is done and all the issues are planned through.
Customers don’t like having to park off site or pay for parking. If you build in a location without good parking, there’s a good chance some customers will decide your business isn’t worth the extra hassle. A well-maintained, convenient, and free parking area is a definite asset when you’re selecting a retail site. Most modern building codes require a certain number of parking spots per square foot of the building anyway. Mutual access and mutual parking agreements are also common. Study the essentials and avoid disappointment.
The last, but certainly not least, factor we’ll talk about is the economics of your retail site selection. When considering finances, take a look at the value each property you’re considering can offer. The price you’re paying to build, purchase or rent space definitely plays a role. You’ll also want to consider utilities costs and amount of maintenance you’ll be responsible for. If you want to be next to the big boys be prepared to pay.
If you liked this article on important factors in retail site selection, be sure to check out the other articles on RetailAttractions.com. And if you want any help with retail site selection, get in touch with us. We have extensive experience with helping retailers find the best possible locations for their next expansion.
Also, be sure to pick up a copy of my new book The Devil’s In the Details: Things that Challenge City Government and the Language of Development. It addresses glaring problems and issues that destroy foundational economic development efforts for cities and provides guidelines for how to overcome those issues. Click here to order.