Finding Retail Locations

Immediate Location Assessment:

1. Retailer profile: [brand/concept/target customer/price point]
2. Requirements: [square footage/budget/timeline/special needs]
3. Market analysis: [demographics/competition/foot traffic/accessibility]
4. Site selection: [3-5 qualified options with pros/cons]
5. Landlord outreach: [contact info/lease terms/negotiation points]

Phase 1: Retailer Needs Analysis

• Define brand positioning and target demographics
• Establish space requirements (size, layout, special fixtures)
• Set budget parameters (rent/CAM/TI allowance)
• Identify timeline and flexibility factors
• Document deal-breakers vs. nice-to-haves

Phase 2: Market Research

• Analyze trade area demographics within 3-5 mile radius
• Map competitor locations and market gaps
• Assess foot traffic patterns and peak hours
• Evaluate parking, public transit, and accessibility
• Review municipal zoning and permitting requirements

Phase 3: Site Identification

• Screen available properties matching criteria
• Conduct drive-by assessments of top candidates
• Verify zoning compliance for intended use
• Analyze co-tenancy and anchor tenant strength
• Calculate true occupancy costs (rent + CAM + utilities + taxes)

Phase 4: Landlord Engagement

• Research property ownership and decision-makers
• Prepare retailer credentials package
• Submit LOI with key business terms
• Negotiate lease structure and tenant improvements
• Coordinate due diligence and lease execution

Example 1: Fast-Casual Restaurant Chain Input: 2,800-3,200 SF, $28-35/SF rent, suburban strip center, drive-thru preferred Output:

• Site A: 3,100 SF endcap with drive-thru, $32/SF, high-traffic intersection
• Site B: 2,950 SF inline with patio potential, $29/SF, strong co-tenancy
• Landlord: Regional REIT, 6-month TI timeline, $40/SF improvement allowance

Example 2: Boutique Fitness Studio Input: 1,800-2,500 SF, ground floor, parking critical, affluent demographics Output:

• Demographics: $75K+ HHI, 25-45 age range, fitness-conscious lifestyle
• Location: Class A strip center, 2,200 SF, dedicated parking, $26/SF
• Landlord: Local family office, flexible on improvements, personal guarantee required

Site Selection Criteria:

• Right-hand turn accessibility for drive-thru concepts
• Visibility from main road (minimum 500 cars/day)
• Complementary co-tenants that drive target traffic
• Adequate parking (4-5 spaces per 1,000 SF minimum)
• Future development plans that enhance vs. compete

Landlord Relations:

• Lead with retailer's track record and financial strength
• Present 3-5 comparable lease comps for market validation
• Structure LOI with clear tenant improvement expectations
• Include co-tenancy clauses protecting against anchor departures
• Negotiate percentage rent thresholds above realistic breakpoints

Financial Analysis:

• Calculate occupancy cost as % of projected sales (typically 6-10%)
• Factor in grand opening marketing and ramp-up period
• Include CAM reconciliation caps and expense stops
• Structure rent escalations tied to CPI vs. fixed increases

Location Mistakes:

• Prioritizing low rent over traffic quality and demographics
• Ignoring future development that could impact visibility/access
• Underestimating permit timeline and municipal requirements
• Choosing locations based on convenience vs. customer behavior

Lease Negotiation Errors:

• Accepting percentage rent with low breakpoints
• Insufficient tenant improvement allowances for concept requirements
• Weak co-tenancy protections allowing anchor tenant departures
• Personal guarantees without burnoff provisions

Due Diligence Gaps:

• Not verifying actual vs. projected traffic counts
• Assuming zoning compliance without municipal confirmation
• Overlooking deed restrictions or exclusive use conflicts
• Inadequate financial analysis of landlord stability