Most modern consumers think about online shopping when they hear the term “retail.” While smaller retailers are finding success online, there is still a market for brick-and-mortar retail stores. Most of these businesses also maintain a web presence, but many shoppers still value the in-person shopping experience that cannot be replicated online.

Choosing a retail store location and layout is a crucial decision for any business that wants to attract customers, optimize sales, and reduce costs. There are many factors to consider, such as the market, the competition, the accessibility, the design, the layout, and the legal aspects. 

Below, we will discuss some of the key factors to consider when choosing a retail store location and layout, and how they can affect your success.

Types of Retail Store Locations

When retailers expand their presence with new stores, as we know, the key factor is location. Whether it is a densely populated or rural area, it is important that the retailer stays relevant. Location can also enhance or decrease the ability for a retail store to market itself and handle any competition from other businesses.

Shopping Centers and Malls

Shopping centers or malls contain several units and lots of space for retail stores to be located. This type of retail store location is ideal because they generally offer adequate parking space and high visibility. They are also often served by public transport routes as customers come here specifically to shop. A disadvantage of this style of retail location is that your retail store will sit next to a lot of competition and the rent is likely to be higher than in other locations.

Free Standing Retail Locations

This type of retail location includes any stand-alone building. It can be tucked away in a neighborhood or right off a busy highway. Free-standing locations come in many sizes and can be appropriate for any type of retail business. Many of the food and non-food retailers use this type of solitary sites.

The primary advantage of having a solitary site is that it is away from the competition and provides the services to the customers, which help the customer to zero down on the product offered by that particular retailer.

However, the shortcomings of having a solitary site are the pedestrian traffic will always be so as compared to a shopping center or a convenience store and the visibility will also business along with the huge amount of investment since the site will be solitary.

Downtown Areas

Many communities are hard at work to revitalize their downtown areas, and retailers can benefit from this effort. You will often find many older, well-established retailers in a downtown area. Since space is usually limited, these locations are often good choices for smaller or specialty stores. However, there are chains and big-box retailers that can make use of downtown retail locations, especially if they are willing to build up rather than out. 

Brick-and-Mortar Retail Space

As consumer shopping patterns change, retail stores must choose their location carefully. The term brick-and-mortar retail space refers to a traditional street side business that offers products and services to its customers face-to-face in an office or store that the business owns or rents. The local grocery or the bank on the high street are examples of brick-and-mortar companies.

Retail Location: Things to Consider

Location

If you are opening a brick-and-mortar retail business, you must focus on finding the best retail space. Picking out a prime retail space for your business needs to be a focal point. While it can be tempting to try to pick a cheap location and hope your business generates a steady flow of customers through its marketing efforts, sometimes, there’s no substitute for being in a busy part of town. Picking a location downtown might be pricier than an option a few miles away from town, but the pricier option might bring in thousands more customers per year.

When determining a location, find where your customers spend their time. If your customers live primarily outside of town, opening a downtown location might be more expensive and bring in fewer customers. Try to place your retail location in an area where your target audience spends its time. While that tip may seem simple, businesses often focus on finding a location they think is fantastic, rather than trying to narrow down where their target market resides.

You may also have a location with additional space to store inventory. If you expect to have a lot of inventory, because you sell a lot of items at affordable prices, you may want additional space. Other stores may sell a few high-end items and don’t need a large space to keep inventory. Keep inventory in mind when selecting a location.

Parking and Accessibility    

In evaluating your business store location, you need to walk in your customer’s shoes and consider how accessible it is for them. Evaluate how easy it is to find your store on foot. Check if the location is well-connected to public transportation networks such as buses, trains and taxis. The lack of accessibility via public transport can put a dent in customer traffic. Chances are that people may not bother visiting your store since they are usually spoilt for choice in this competitive market.

Additionally, check on average parking fees and the availability of parking facilities in the vicinity of your store. Customers who drive are less likely to visit if they cannot find parking or have to incur steep hourly rates.

Demographics

When considering where to open your store, it is important to think about the demographics of the area. Who is your target market? What is the median income of residents in the area? What is the population density?

Consider these factors when narrowing down your search for the perfect store location. Finding the perfect location on paper means nothing if you do not have any customers or potential customers in the area. For newer businesses without an established consumer base or demographic stats, create a profile of your audience demographic. This should include the generation of the customer you are selling to, their expendable income, and shopping habits. 

Competition

When deciding where to open your store, you need to consider the level of competition in the area. If there are already a lot of stores selling similar products, you will need to find a way to make your store stand out. On the other hand, if there are not many other stores in the area, you may have a better chance of being successful.

Here’s how to determine the level of retail competition in an area:

• Visit the site in-person to see which other stores are nearby
• Search online for information about the businesses in an area
• Reference research and data from third-party firms like IPA COMMERCIAL REAL ESTATE
• Partner with a site selection advisory firm to get access to proprietary data

It can also be helpful to talk to other businesses in the area — competitors or not — to get an inside read on what it’s like to do business there. 

Proximity to Other Businesses

Look out for complementary businesses in the vicinity, because their customers and employees could also become your customers. This makes it very convenient for them to get products and services from your store since you’re in the neighborhood. 

Take note of other businesses that will enrich the quality of your company. Are there many reputable brands nearby? Are there popular shops, services and restaurants drawing adequate traffic to the location? These are telltale signs of customers who might visit if you set up your business in the locale.  

Traffic Flow

Many retailers are currently using traffic flow analysis in retail management to discover the distribution of traffic by hour, day of the week, store location, seasonal periods, promotion periods and total chain. With traffic counting, retailers can make sure they are in the best location possible. Tracking traffic flow in retail allows you to create initiatives that increase the likelihood of sales. Sensors and infrared technology can be used at the entrance areas to count the number of visitors to the store. Some technology is even so sophisticated that it can tell whether the customer is entering or leaving. Counts will be generated and sent to a database. Some software systems allow reports to be generated by store, time, entrances, and segmentation groupings.

Growth Potential

Do you need a location with room to grow? As you hire more employees, how many more will fit in this location? You do not want to pay for more space than you need, but if you have to sign a three-year lease and think you will outgrow the space in year two, breaking your lease and moving will cost a lot of money.

If you own a store, do you plan to add additional products to your inventory mix? Is there room? Is your restaurant planning to add catering services? Is the kitchen big enough to handle both?

Signage, Zoning and Planning 

Before signing a lease, be sure you understand all the rules, policies and procedures related to your retail store location. Contact the local city hall and zoning commission for information on regulations regarding signage. There may be limits on the size and imagery used in signs that advertise your business. Ask about any restrictions that may affect your retail operation and any future planning that could change traffic, such as highway construction. 

Location Costs

When deciding where to open your store, price is an important factor to consider. The cost of rent, utilities, and other expenses can vary greatly from one location to another. You will need to do some research to find out what the average costs are in the area you’re considering.

Along with the base rent, consider all location-based costs involved when choosing a retail store location. 

• Who pays for lawn care and security?
• Who pays for the upkeep and repair of the heating/air units?
• Will you need to do any painting or remodeling to have the location fit your needs?
• Will the retailer be responsible for property taxes?

The location you can afford now and what you can afford in the future may vary. It is difficult to create sales projections for a new business. One way to determine how much rent you can pay is to find out how much sales similar retail businesses generate and how much rent they pay. 

Why Choose IPA Commercial Real Estate?

Selecting the best Retail Location and negotiating an acceptable lease can be a “minefield” of potential challenges. Doing this on your own is very dangerous. It is critical to choose a broker well experienced in Retail properties and one that has local knowledge and a long history of success. Also, for people who own commercial real estate properties, working with a respected local retail broker can be a great resource. With 30+ years of experience in the Inland Empire, the experience of the IPA Commercial Real Estate team provides a depth of knowledge regarding all facets of Commercial Real Estate.

IPA Commercial Real Estate is very focused on client properties and tenants and we have the skills and knowledge to make your ownership experience easy and pain-free.

Call IPA COMMERCIAL REAL ESTATE at (951) 686-1462 ext 325 to discuss how we can help you. Let us show you how to add value to your property. 

Flexible workspaces are no longer just for startups and freelancers. As companies are embracing hybrid work, flexible workspaces are becoming a popular solution to make that happen. More companies are now working in blended environments with some staying remote and some returning in-person. They bring greater flexibility, broader geographic coverage, and reduced costs to companies, which is why many companies increasingly choose them over traditional offices.

Workplace flexibility has been a key draw for workers for some time. Workers have repeatedly emphasized the importance of that flexibility and what it means for them as they choose jobs, decide whether to remain in a given position and try to balance work with their everyday lives. As a result, companies are investing more and more in creating interesting, custom-branded spaces.

But what is a flexible workspace and how does it help occupiers as they adapt to a hybrid work model?

Return to the Office

As the world moves on from COVID-19, working life has returned to many of the pre-pandemic norms. At least for the foreseeable future, the office will likely remain the hub of business activity. However, flexible work-from-home will allow many employees the convenience of skipping the commute a few days a week. The trend toward returning to the office will see millions of employees working in the office in person at least some days each month as many employers are embracing a flexible work-from-home model.

Some executives and leaders believe productivity increases when workers are in the office together, while others hope to increase in-person collaboration. If your business plans to introduce other measures that encourage flexibility in conjunction with a return to the office, such as hybrid work or alternative work schedules, announce this to employees as well.

What Are Flexible Workspaces?

A flexible office space is a type of workspace designed to provide employees with a variety of different places and ways to work. Unlike traditional offices with fixed and assigned desk positions, workers in a flexible office space can choose the area of the office that best suits the type of work they need to do at that moment.

Flexible workspaces can be easily rearranged to accommodate changing business objectives, or quickly scaled up and down to fit teams of different sizes. These kinds of dynamic office spaces are typically designed to be used in conjunction with flexible working arrangements to provide teams with the freedom to work where, when, and how they want.

Who Uses Flexible Workspace?

Even now, the flex workspace market battles the perception that it is solely for small businesses and that corporations and larger organizations do not belong in shared spaces. The reality is that companies are trading in leased buildings for flex space. In fact, demand last year grew by 35% in the US and 30% in the UK as larger firms sought out space in flex workspace centers operated by a third party.

They are choosing to use this space for large project requirements, or for the benefit of taking on more space for a year or two without the risk of committing to a long-term lease. For these firms, flex workspace is a low-risk way of expanding and taking on more staff without needing to commit to a more rigid model of occupancy – the lease.

Types of Flexible Workspaces and How They Work

When we think about the traditional office space, we know what it looks like: most likely an open plan and less often cubicles. Remote workspaces come with a greater variety of layouts and types of spaces, from open space to private spaces. Let’s go over some of the most common ones:

• Traditional office space – While lacking many of the benefits that other types of flex office space provide, traditional office space still fits within the definition of flexible office space as long as the lease terms are within three years.
• Shared office space – Shared space is another term that is changing quickly with the times. These types of shared spaces enjoy informal sharing agreements and subleasing a portion of another organization’s office space.
• Coworking space – This is a subgroup of shared space, where virtually everything except a dedicated desk or office suite is shared with other companies, teams, or individuals.

Coworking spaces include:

• • “Floating” or shared desks
  • Dedicated desks
  • Private offices in a coworking space (previously referred to as executive suites)
  • Office suites in a coworking space (multiple offices)
  • Custom buildouts by a coworking provider, also called a flexible headquarters

How Are Flexible Workspaces Affecting the Real Estate Industry?

An overriding trend has been the shift towards service-based models, in many cases enabled by digital innovation. Commercial real estate is undergoing an evolution as increased demand for flex space and innovation around the office models for procurement and operation are leading to profound change; with much of this centered around the idea of workspace as a service.

This growth in more flexible working, enabled by technology and the changing attitudes of business, has seen how organizations find and occupy offices radically evolve.

Increased workplace flexibility means immense changes within many workplaces.

Need For Less Overall Real Estate

Since many employees are conducting their work from home or virtually, facility managers may find that their employees may need less actual physical space in their workplace environments in order to conduct their usual job tasks. This may result in several changes to the status quo.

Changing Needs for Communal Spaces

With meetings, including client meetings, taking place virtually, many facilities managers are finding that there’s less need for communal space within the office. Meeting rooms may not need to be as large, since many people will be connecting with the office via a virtual connection.

The shift to virtual workers, or flexible work schedules, also means that many facilities have smaller break room needs. On the other hand, it may mean that facilities managers need to carefully consider where people will gather when they are present within the physical office environment, and make sure there is adequate space for employees on the days when everyone needs to report for a specific reason.

Increased Flexibility Changes Security Needs

As flexibility increases across the workplace and employees spend less time in the physical building, security needs are changing along with those demands. Your on-site security and reception staff might not have the chance to get to know every employee personally. They won’t see them coming into the office every morning or have a chance to get to know their needs on a personal level.

Tracking and monitoring software can make a huge difference in your overall security since you can better keep track of exactly where employees are and who is in the building. This strategy can also make it easier to continue to stop security threats at the door, rather than mistakenly allowing them to get through.

Why Is Flexible Space So Popular

Businesses, large and small, have begun to gravitate towards flexible space for a variety of reasons. First and foremost, it provides more agility for organizations, helping them seamlessly expand or contract over time. Shorter agreement terms carry less risk for an organization, whereas a complex, multi-year lease can essentially act as an anchor when mobility is a critical need for most enterprises.

Benefits for Businesses

Besides agility and mobility, the different types of flexible space also provide a range of benefits for businesses that longer-term, traditional leases lack.

• Lower costs/overhead
• No long term lease
• Convenient scalability
• Fully furnished spaces
• Fast solutions to enter new markets
• Improved employee retention

Benefits for Operators & Landlords

By embracing the benefits of flexible workspace, landlords can not only future-proof their assets, but also best stand out at this crucial moment when lockdown is easing and recovery begins.

1. Increased occupancy and revenue
2. Enhanced tenant satisfaction and loyalty
3. Improved operational efficiency and sustainability

Why Choose IPA Commercial Real Estate?

Choosing the right commercial property management company can make real estate ownership a breeze. For people who own commercial and industrial properties, working with a respected property management company can be a great resource. With 30+ years of experience in the Inland Empire, the experience of the IPA Commercial Real Estate team provides a depth of knowledge regarding maintenance and project costs.

Just like management in any other business, a respected management company can monitor the care and financial requirements of any property. We can also help evaluate your rent structure. IPA Commercial Real Estate very focused on client properties and tenants and we have the skills and knowledge to make your ownership experience easy and pain-free.

We offer 24/7 Service from our team day or night! Call IPA COMMERCIAL REAL ESTATE at (951) 686-1462 to discuss how we can help you. Let us show you how to add value to your property.