Characteristics of street retail influencing profits
Renting street retailers – premises located on the ground floors of buildings – is very popular among entrepreneurs in various fields of activity, since they have many advantages: a separate communications system, a separate exit to the street and large shop windows, which makes the shopping process much more convenient and enjoyable for buyers.
Street retailers can be located both in residential buildings and non-residential premises. Often, during the construction of new residential complexes, the first floor is allotted for shops or offices even at the design stage. In older buildings, it is also quite common for the ground floors to be converted for commercial purposes. This type of commercial real estate is rented for a wide range of activities: grocery stores, pharmacies, beauty salons, cafes, clothing stores, shoe repair shops and much more.
Characteristics of the premises on which income depends
With the right selection of street retail for rent, you can get really good earnings, but for this you should pay attention to certain nuances. Depending on the specific type of business, there are individual characteristics of the choice of premises, however, there are basic points that are important in all cases.
Not all non-residential real estate objects with a separate entrance can be classified as street retail. Another important parameter is the commercial potential, which is determined by the number of potential buyers who regularly pass by the building. For example, if we compare the central region with an industrial one, then the latter has much less chance of successfully selling goods or services. Therefore, when renting a room, one should take into account the intensity of the pedestrian flow; the center, sleeping areas, the market, business centers and so on are the most popular.
It does not always matter just a large number of people passing by the store, often you have to take into account a rather narrow target audience (stationery store near the school).
It is also worth considering the purchasing power of consumers, for example, an elite boutique in a residential area will definitely not pay for itself. Pay attention to nearby stores to form an opinion about your audience. Equally important is the presence of competitors’ establishments nearby, if possible, this should be avoided.
Before renting premises, you must make sure that they meet the standards of sanitary and fire safety.
Based on the rental rate, one should calculate the feasibility and possible prospects of such an investment, taking into account the expected income from street retail. Such an assessment can be done by collecting data on available advertisements, or even contacting experts in a particular field of activity. Pay attention to the accuracy and relevance of the information. In addition, many data are not static and may change depending on the appearance of new objects, increase or decrease in traffic load and other factors, therefore, such information requires regular adjustments.