Retail

If you are considering investing in commercial real estate, retail space may be one of the better sectors. Even though demand for retail may vary with shifts in economic conditions, one thing is for sure there will always be a need for commercial real estate. While the internet has opened up the door for many online retailers who sell clothing, shoes, books, food, and thousands of other products, the fact remains that many products and services still need “traditional bricks & mortar” commercial space to operate. The most common examples being Gas Stations, Restaurants, Bars, Cafes, Drive-thru Fast Food, Ice Cream Parlors, Pizza Parlors, Dry Cleaners, Day Spas, Auto Repair & Body Shops, Fitness Gyms and the list goes on to virtual infinity.

RETAIL SPACE FALLS INTO 4 MAJOR CATEGORIES:

  • Single unit “stand-alone” commercial real estate such as a CVS Drugs, a Dollar General, a Waffle House, a McDonald’s, Convenience Stores and much more.
  • Neighborhood Strip Centers are typically found in communities where there is a large growing population base and a lot of homes.
  • Big Box Retail Center. This is usually anchored by a Grocery Store or big name retailer like Macy’s, Old Navy, Office Depot, Home Depot, Bed Bath & Beyond and offers for lease a selection of smaller retail spaces to neighborhood style retailers
  • Regional Shopping Centers.They are usually located in high traffic locations and are at a minimum 100,000 square feet and larger. They consist of a blend of larger well known stores and smaller less known retailers in addition to having leased out parcel space for restaurants.

TWO THINGS THAT SEPARATE RETAIL SPACE APART FROM OTHER SECTORS OF COMMERCIAL REAL ESTATE ARE:

  • Single unit “stand-alone” commercial real estate such as a CVS Drugs, a Dollar General, a Waffle House, a McDonald’s, Convenience Stores and much more.
  • High daily traffic count. Without superior traffic and high visibility, retail space tenants are likely to struggle and often go out of business.