BlogCommercial Propertyretail space for lease

Today we are going to share with you the biggest mistake we see business owners making with retail space for lease, in hopes that you will avoid making a similar mistake in the future.  Running a business is tough enough without handicapping yourself right out of the gate, don’t you think?

We are RDS Real Estate, one of the leading commercial and industrial property real estate companies in Fort Worth. Call us at 817-439-3224 if you are looking for commercial property for rent or industrial space for lease. We are confident we can find what you need at a price you can afford.

Now, though, let’s help you avoid a rather common mistake with retail lease space we see quite often in this business.

Budget and location of retail space for lease are important, but . . .

You will see it written in many articles.  You will hear many business experts talk about it, and they will proclaim that budget and location are crucial factors when choose retail space for rent, and we do not debate that they are important.  Choose a property which is too expensive for your operational budget, and you are putting a proverbial noose around the neck of your company.  Choose a property which is in a terrible retail location, with very little drive-by or walk-in traffic, and you might as well not open the doors to your business. Failure is sure to arrive sooner rather than later.

But . . . let’s say you find a retail space for lease with a great price for your budget; and let’s say you also find one which has a great location, like the Fort Worth Design District is in Fort Worth.  Before you sign the lease contract, you need to consider one more thing.

One of the worst things you can do for a retail business

One of the worst things you can do for your retail business is move it shortly after opening it, and by shortly we mean within the first few years.  Customers do not handle change well. They do not react quickly to change.  Historically, retail shops which change locations see between a 10%-30% drop in business the first six months, and that drop in business volume could, and does, cripple many a retail store.

And why would a retail shop owner move his store shortly after opening in a great location?

Because that owner did not take into consideration growth of the business.

Peer into the future for retail space for lease

Consider this scenario, which happens at an alarming rate in the business world.  A person opens a retail shop.  It’s perfect.  It is the exact size it needs to be for the projected sales, and it is the perfect cost in a great area.  And that business explodes in sales. Customers spread the word about this great retail business where employees are friendly and the product is first-rate, and after the first year, the problem arises: there is a distinct lack of room for the increased inventory needed, the increased staff needed, and the increased flow of customers.

Look to the future when you are renting retail property. Is the property you are looking at capable of handling, say, a 25% growth in business?  If it isn’t, we strongly recommend not renting that property and instead finding a property which is slightly larger.  Yes, it will cost you a bit more in the first few months, but that extra cost will be negated by increased sales six months down the road.

Learn from the mistakes of those who came before you. Plan for the future!

A word about RDS Real Estate

Locally owned and operated, with literally hundreds of commercial and industrial properties available, RDS Real Estate has Fort Worth, and Tarrant County, covered like a fine-fitting glove. Call us today and we can help you find the perfect property for your needs.