Retail space is commercial real estate property where goods and services are sold directly to buyers in person, who are purchasing for their own use. These brick-and-mortar storefronts including strip malls, shopping centers, community retail centers, power centers, shopping malls and out parcels. Properties may be operated with a single tenant or multiple tenants who typically lease space from the property’s owner.
STRIP MALL/SHOPPING CENTER
These small retail properties include a mix of tenants in different retail businesses such as gift shops, salons and dry cleaners, which may or may not include an anchor tenant.
COMMUNITY RETAIL CENTER
Normally 150,000 to 350,000 square feet, community retail centers often feature multiple anchor tenants such as grocery stores, drug stores and restaurants.
These larger retail centers typically have several smaller, inline retail store tenants with a few major box retailers. Each big box retailer occupies 30,000 to 50,000 square feet. Power centers often include several out parcels as well.
Traditional regional malls offer 400,000 to 2 million square feet of space with multiple anchor tenants such as department stories and major retailers.
Large retail centers often include multiple out parcels, which are retail properties allotted for individual tenants such as restaurants or banks.
Much like office space, retail space can also be classified in three tiers:
Class A properties offer high-end construction, quality interior detailing, sought-after design, sustainability measures and top of the line mechanical and sprinkler systems. They often have existing high-end tenants and may offer desirable amenities, such as valet parking and on-site services.
Class B properties are one step down and may be slightly older or in a less attractive location, yet they are still well-maintained, have quality tenants and good access. These properties are often a good investment and can increase in value with upgrades and repairs to become Class A.
Class C properties are in less desirable locations, have few amenities and a more dated appearance. With upgrades and maintenance, these properties can sometimes move up to Class B.
Your Trusted Guide
To compete in the retail space, investors need a nuanced understanding of consumer demand and how that impacts the needs of tenants. Coldwell Banker Commercial® affiliated professionals who specialize in retail can help owners maximize the value of their property prior sale through recommended upgrades, rehabilitation, market repositioning and helping secure anchor tenants. Our skilled CBC affiliated professional can assist buyers with aligning their business strategies.
Whether you are looking for retail space to purchase, lease or sell, our knowledgeable professionals can help find you the right retail space for your needs.
Look to the Coldwell Banker Commercial network to assist with all your retail real estate needs. Our services include:
Acquisitions – CBC affiliated professionals can assist you with research, due diligence, lease and purchase.
Demographic Overviews – Our experienced CBC affiliated professionals can help you understand where your customer lives, their preferences and lifestyle characteristics, what paths customers take to the store and where they visit before and after the retail site.
Market Analysis – We can identify underperforming markets, analyze market potential, and find and rank potential locations for your retail real estate investment.
Void Analysis – Your CBC affiliated professional may identify gaps in specific businesses and services in one area compared to a similar area.
Competitive analysis – Our CBC affiliated professionals may map potential store locations, evaluate the competitive environment of each site, determine the site’s market share, and identify if new trade areas overlap with existing locations.
Landlord representation - We can help property owners and investors attract and retain ideal tenants while boosting investment value through our access to the leading online database of currently expanding retailers.