If you want to start a brick-and-mortar business that sells goods or services, you are going to need a commercially-zoned retail property. Retail real estate is one of four subcategories of commercial property. Commercial property is real estate that is used to generate income. Retail property can only be used for commercial purposes.
A retail business is any online or physical business that sells a good or service. This could include any place that sells food and beverages. Businesses that provide services related to hair, skin and nail care are also considered retail. Clothes, home goods, appliances, auto sales, boutiques and gas stations are also excellent examples.
You can find retail real estate properties in strip malls, shopping centers, downtown and in urban areas. Keep in mind that business conducted on retail lots must only involve the selling of products and services. Retail establishments are not zoned for the production or manufacturing of products.
As a retail real estate investor, consider several leasing factors for your property. Retail space leases can span a variety of time. Most retail leases are valid for five to ten years. However, there are short-term lease options available, like yearly and month-to-month leases.
As a retail lessee, there are four types of commercial real estate leases you should be aware of. As a retail tenant, your type of lease will determine what payments you are responsible for. For a single net lease, you can expect to pay rent and property taxes. In the same vein, with a double net lease, you will also pay for insurance. Then, with a triple net lease, you pay rent, property taxes, insurance and maintenance. Lastly, with a gross lease, you just pay for rent.
Before you invest in retail space, consider the following characteristics of the property. Successful retail businesses thrive where there are clients and demand. Ask yourself if the property you are considering is in a location that has a demand for your business. A great neighbor to have next to your business is an anchor tenant. An anchor tenant is a large, popular business that regularly draws clients to your business's area. Examples of retail anchor tenants are Walmart, Target, and Home Depot.
Perform a thorough inspection of the property. You want to invest in a property that requires the least amount of structural renovations. Does the design of the property suit your business aesthetic? Can you envision your business in that space? How will you design the layout for your business given the floorplan of the property? What does the entrance look like to the property? Will it be easy or inviting to customers? Rundown, clunky, or hard-to-find business entrances are major detractors for clients. Natural lighting is an in-demand feature for modern retail spaces. Naturally lit spaces are inviting and energizing for customers.
When looking for retail space for sale or lease in Duluth Minnesota, be sure to follow these recommendations. Also, connect with an experienced commercial real estate broker who can assist you.