What does the market look like for retail space for lease going into 2025 and beyond? What should you expect? Is it a good time to lease retail lease space in your area? We will tackle those questions and more in this article by RDS Real Estate, leading industrial and commercial property broker in the Greater Fort Worth Metro area. Call us at 817-439-3224 for more information.
What is retail space for lease?
What are some typical features in retail space for rent? Retail space is for businesses who rely on a lot of foot traffic. They are typically near another, perhaps larger business that is referred to as an “anchor business,” like a grocery store or department store. They’re placed this way to draw customers from the “anchor business” over to the smaller business. Businesses such as grocery stores draw lots of foot traffic. Once someone is done with their grocery shopping, the smaller store may catch their eye, leading them to go explore it. Retail spaces are often in groups, like strip malls or retail parks. They also may have marquees to add another eye-catching detail. Retail spaces will typically have large glass windows, perhaps with products and/or mannequins in them to draw people in.
There are cases where foot traffic is not needed. Large brand name stores are so popular that they flourish despite the lack of foot traffic; stores like Home Depot are far removed from normal foot traffic and yet they do quite well.
Typically, the most common piece of advice when looking for retail space for lease is “location, location, location,” meaning that the location of a property will determine greatly the success of that retail business. This is partially true; there is no denying the importance of location; however, if you are offering a product or service which is unique, or of such high quality as to be deemed “necessary,” people will drive to your store no matter where you are located.
The health of the market in your area.
As we head into 2024, many of these key indicators suggest that demand for leasable retail space for lease will remain strong for the foreseeable future. A combination of robust consumer spending, low vacancy rates, subdued construction starts and aggressive growth targets among national retail chains is powering a rally in retail rent growth.
Trends to be aware of.
The main trend to be aware of is the movement towards smaller retail space for lease. The era of huge retail stores seems to be coming to an end, replaced by smaller, independent retailers selling either a quality niche product or providing incentives which are so appealing as to draw customers away from the larger chain stores. This is a slow movement to develop, but it is definitely one to pay attention to.
We would also advise that you pay attention to the growth patterns in your city. Where is the population shifting to? Where would it be advantageous for you to establish your business? Does your business require foot traffic, or are you quite fine with just car traffic? Again, our old friend location is quite important in making the right choice.
A final word about RDS Real Estate.
RDS Real Estate is locally owned and operated, with over three million square feet of industrial property for rent and commercial property for lease. Call us and tell us what you need. With regards to the information stated above, we will tell you that the population shift in Fort Worth is northward into the Alliance Area and southward into the Alvarado Area. We will also advise you to take a look at the Fort Worth Design District for the very best in small, funky retail shops at an affordable price.