If you are considering investing in retail buildings, you should be aware of the factors that will help you get lucrative deals. These buildings focus on the customer experience, and so their layout, structure, and design should be customer-centric so that you can earn good revenue from the property after you invest in it. The common examples of retail buildings are shopping centers, one-storied supermarkets, multi-storied shopping centers, etc.
Ali Ata- An overview of retail buildings and four factors to consider before you invest in them
Ali Ata is a leading name in the field of real estate in the USA. He is also associated with The American University of the Middle East and has experience in the academic field as well. His company AAIM Development invests in commercial real estate, and so he has valuable experience in the field as well. He says that if you wish to make a lucrative investment in retail buildings, ensure that you consider the following factors-
- Location- You should ensure that the location of the retail building is in a good spot that will attract commercial customers. Note that roads and transport will play a crucial role when it comes to the profitability of the retail building that you are investing in. Make sure that public transport and the roads near the building add value to the performance of the property as well as the trade of its tenants.
- The behavior of the customer- The shopping patterns of the consumer, as well as the demographics of the customer, will play a vital role when it comes to the success of the retail building that you invest in. Ask yourself the following questions-
- Why will the shopper come to your retail building?
- Can you improve the attraction quotient of the building to the customer?
- Does the tenant trade in the building sync in with the expectations of the potential customer?
- Tenant trade- Understand the tenant mix in the building by accessing them in some unique ways like the products or services they offer, the factors that influence vacancy, the types of leases, the plans required for renovation, and dates that are critical for business and sales.
- Leases- When it comes to leases, note that the options that are available to renew a lease can be both good and bad. Some retail building owners will not give you options for lease negotiations as they generally will impact the performance of the property and the placement of tenants for a very long time. It is prudent for you to re-negotiate the leases for retail buildings based on what the client expects, the customers, the tenants, and the property. However, make sure you do this smartly as it can be frustrating for you to renew the lease as it can change the strategy as well as the directions for the mix of tenants in the property.
Ali Ata sums up by saying that before you invest in retail buildings, ensure that you focus on the customer experience and property performance as these two basic factors will guide you to get a building that generates maximum ROI at a minimum investment. Research the building well and take everything into account before finally signing on the dotted line!