Three Tips for Finding The Perfect Retail Space

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The secret to knowing when you found the right retail location is all in the real estate profile according to Capital Retail Group, a premier commercial real estate firm in Washington D.C.

Knowing when you have found the right location can be the secret path to success for any retailer. Carefully researching and creating a real estate profile is important to determine if a site should be pursued according to Robert Tack, the CEO of Capital Retail Group, a Washington DC based commercial real estate firm. Tack says, “While many retailers have different formulas for success all should do enough research before they sign a lease to know what site characteristics, demographics, traffic patterns, and general lease requirements work best for their retail use.”
The firm has published a proto typical example of a coffee shop for reference:

Site Characteristics
    o    Floor Plan size: 800 to 1,200 sq. ft., 16' minimum store width
    o    High profile end-cap w/drive thru, end-cap, in-line location
    o    Located in mixed-use power center, open-air mall, dominant "daily needs" grocery/drug anchored neighborhood center or in a dominant entertainment / life style center
    o    Ample parking contiguous with site, minimum 7-stalls
    o    Easy ingress and egress (no more than 2 turns in or out)
    o    Signage:

Demographics & Traffic Characteristics
    o    For suburban locations a residential population of at least 20,000 residents within 3-minute drive-time and 35,000 within a 5-minute drive time.
    oMedian household income should be at least within 10% of market average or above.

    o    Generators include national anchors, national branded restaurants, supermarkets, drug store and entertainment concepts.
    o    Minimum traffic counts 25,000 ADT

General Lease Requirements
    o    Five (5) year term, with three (3) five (5) year options to renew
    o    Negotiated tenant improvement allowance
    o    Standard "vanilla" shell, with a the following upgrades included;
    o    Electric: 208/200 AMP, 3-phase, 4 wire electrical service
    o    HVAC: 8 tons or 1 ton HVAC per 150 sq. ft. of leased premises
    o    Water: 1 1/2" water line, metered to space
    o    Gas: 2" gas line to space recommended
    o    Ceiling: 10-foot drop ceiling with light fixtures
    o    Sprinkler: As required to meet code
    o    Restrooms: Two (2) public restrooms

About Capital Retail Goup

Capital Retail Group provides a full range of property tax, property management,and strategic advisory services to the commercial retail sector serving Washington DC, Maryland, and Virginia. Follow us on Twitter and our blog.


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Robert Tack
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