So you’ve decided to take the leap and get into the retail trade. It’s a tough business but it can also very rewarding with all the great people you meet. Here are some pointers and things to remember before you sign on the dotted line for that great space.
The product/area
The first thing to keep in mind as you consider a suitable retail location is the product or service you are selling. Will you mainly cater to walk-by (i.e. “impulse purchase”) traffic or will yours be more of a “destination” location?
If “destination,” will parking be a necessity?
Also consider the area. Is it generally safe, especially if you’ll be open during evening hours? Will people feel comfortable coming to your location or will they be put off by the neighbourhood?
Who are your retail (or residential) neighbours? What are the rents in the area compared to those in other neighbourhoods? Average rents will often tell you everything you need to know about an area.
Tip: Employ a knowledgeable commercial realtor to provide rental rate information. Realtors are professionals who do this for their clients on a daily basis and can quickly provide you with a wealth of information that will make this process a lot easier. And generally they get paid by the landlord or their listing brokerage for bringing them a tenant, so their assistance to you is free.
The space
Now to the space itself. First, is it large enough for what you’re planning to do there? If so, wonderful. But measure it yourself to be sure.
Does it have ample storefront exposure? Is it located on a busier thoroughfare or a side street? This will greatly dictate customer traffic and the lease rate. What is the current usage and how successful is it? This may or may not be of concern to you.
Check the applicable municipal zoning bylaws to ensure you can operate your type of business there. If it’s allowed but an unrelated type of business operates there now, you will have to apply to the municipality for a change of usage.
Tip: Don’t overlook that little necessity of obtaining a business licence! Also check with both the landlord and the municipality regarding their respective signage regulations or constraints.
Next, what kind of improvements will be necessary for you to build out this space and how much will they cost? Do you require one or more washrooms and/or wheelchair access? What kind of electrical service is present?
Check both the power and plumbing services and, if not sufficient, where will you have to go to access them (coring through concrete can get very expensive).
Tip: When costing your space buildout, ask other retail associates, friends or realtors who can personally recommend at least three quality contractors. Don’t simply search online picking names at random. You could regret it. •
