The US retail sales growth forecast for 2022 is 4.1 percent. Although online shopping has rifled the market, many retail developments can still haul in the cash – if located in the right spot.
The location of a retail development can make or break a business and will impact sales and how well you can build brand awareness. If nobody sees a store, nobody will visit it.
Retail site selection should be focused on location, demographics, and competition. A visual inspection should be carried out prior to construction at each site you are considering.
Before you start your search for the right development site, complete a business plan to determine the square footage and layout that best suits your development goals.
There are many different types of retail developments:
- Malls
- Supermarkets
- Warehouse stores
- Department stores
- Mom and pop stores
Each type of retail development will have different land requirements and access needs.
Retailers want to be in the right place at the right time with lots of potential customers nearby. How will a commercial property developer know if a site has potential? Here are some guidelines to follow when sourcing the perfect site for retail development:
- Know where you want to build: Retail development sites should be sourced at a regional level using detailed maps. Are you in the Jackson, MS area? Are you considering building a retail outlet for example? Choose locations that maximize the number of passing shoppers like residential areas, these areas usually have the least competition from existing retail outlets.
- Make sure each site suits the intended purpose: Each type of retail development should be matched with locations that will suit the intended use of the store for maximum capital growth potential. An example being: developing a large supermarket that offers a wide range of goods. The area should be analyzed to ensure the supermarket is built on a site close to large population areas.
It is just as important to find a site that is fit to size. You don’t want to lease a 10,000 square foot piece of land only to find out that you needed 5,000 sq ft.
- Find sites that are easy to access: Retail development sites should be located near major roads and local services like public transport. A great retail development site should allow consumers to access the premises via motorway junctions and on foot; car-free access is just as important as access via car.
There is a reason why online shopping is so popular and that is down to ease of access. So avoid sites that are too far from customers, making them difficult to reach. Being able to see the retail store from the window of a car is one of the best marketing tools you will have access to.
- Look for areas with space to expand: Developers should invest in open areas where parking can be implemented. This will allow the site to be more accessible to customers without having to worry about parking fines and restrictions.
A good development site should allow for the option to expand in the coming years if needs be.
- Know the geographical characteristics of each site: Avoid high-risk flood zones. Retail property values can reduce by up to 20% during flooding.
Is the site located near a scenic forest that is visually stunning but runs the risk of trees collapsing into the development area? To avoid low-quality sites be mindful of both above-ground and below-ground factors like obstacles underground preventing plumbing pipework from being laid.
- It’s not a great site if it isn’t safe: Is the development area safe? Try to avoid areas high in theft and vandalism crimes. Certain sites will require security to guard the premises during and after construction.
Security also applies to the future logistics it will take to get the retail development functioning. Delivering goods to a retail store at night in a bad neighborhood comes with its downsides for the driver and logistical team.
Summary
Finding the best site for future retail development is best done in person. It’s best to expand your search and look at multiple locations, then narrow down your options. Many locations will present hidden obstacles which might hinder construction without being obvious at first glance e.g underground blockages preventing foundations from being built. A thorough inspection should be conducted and the landowner must be asked questions.
Finding the best site for your development needs will involve matching your requirements to the land. If you are planning a large-scale development, select larger areas to take a look at. Knowing the specific square footage of your future development will help you choose the correct expanse of land. This will save cash and time.
Your development location does not need to cover every single factor we have mentioned, but the more the merrier. The most important chunk of information you should take away from this article is to ensure your location is easily accessible and suits as many consumer needs as possible.