When looking for retail space most users typically look for the cheapest space they can find and then sign a lease. The less expensive option is not always the best option. It really depends on a number of factors such as the audience you are targeting and the way in which you sell your products. You have probably heard that the 3 most important factors when leasing brick n mortar retail space are location, location, location. Below are some tips to help you select the right retail space for your business:
- Know your Audience – You need to decide early on who you want to buy your products. For example Austin has over 1 million people and counting and each area has different demographics and characteristics about them that may or may not work for your business. If you want to target college kids then you might need to set up shop as close to the University of Texas campus as possible. If young professionals appeal to your business then being close to central or downtown Austin might be the best option.
- Study the demographics of each area – In Austin you typically find higher yearly incomes in Northwest, West, and Southwest Austin. The East side is getting up there however is still going through gentrification. There are lots of tools to help you with demographics so you can get as complex as you want. When studying demographics pay close attention to traffic patterns, lifestyle data, age, income, # of households, etc. You also want to study other neighborhood traffic generators (both foot and highway traffic) such as schools, hospitals, office buildings, & colleges.
- Get to know your competition – A lot of experts might agree that your best location might be as close to your competition as possible. Typically your competition has already done their due diligence and selected their location based on the best demographics. And since they spend a large majority of their marketing budget on driving customers to their locations you can take advantage of their marketing efforts. Competition is great so if you stand behind your product and offer a great service then you want to go right up against your competitors. Of course you still want to evaluate other potentially great locations especially if it’s an up and coming area that your competition has not taken advantage of yet.
- Get Local Help – Consider hiring a local commercial realtor that specializes in retail space. Not only can they help you research and identify the best locations based on your target audience, demographics, and traffic patterns, they can also represent your best interests in negotiating the terms and conditions of the lease.
- Drive Around ALOT – At the end of the day you need to see for yourself what certain locations, competition, and traffic patterns look like. A commercial realtor can help you also however it’s important for you to see for yourself as well.
These are just a few tips to consider finding the right retail space location. For more help give us a call at 512-861-0525 or send us a note. We would be glad to assist you.