The One Question Every Retail Tenant Must Answer Before Leasing!

 A question I ask every one of our retail tenant clients and they don’t know how to answer. Are you an impulse retail client or are you a destination retail client? Hey everybody, Joseph Gozlan with Eureka Business Group and today we’re going to talk about. A question I ask every one of our retail tenant clients, and they don’t know how to answer.

So, let’s talk about that. Are you an impulse retail client, or are you a destination retail client? What does that mean? So, every retail client we work with has their business. That’s why they’re a retail tenant that’s looking for a space to lease. And, there’s a lot of different people. types of retail out there.

There are restaurants and there are dance studios and there are vet clinics and there are doctors and every one of them might need a space in a retail strip or in a shopping center. Even if you’re looking at a regular shopping center, there are different locations in the shopping center. There is the end corner.

We call it end cap or a corner unit. Sometimes it has a drive through, sometimes not. But the corner unit is a very attractive place to be because usually it has better visibility from the road or from people coming in and out of the shopping center. There is in line, which is the middle of the shopping center.

There is the elbow, which if the shopping center is built in an L shaped, that would be the one right in the corner between the two legs of the shopping center. And sometimes there are a standalone. Think like a shopping center that has a Wells Fargo or has a McDonald’s at the corner of the lot But not part of the main building.

So all kind of different locations even within the shopping center So, how do I pick as a tenant? Do I want to be in the corner units? Am I okay in the in the middle of do I need the elbow or do I hate the elbow? Lots of different questions and it comes down to figuring out if you’re one of two. Are you a destination?

Retail or are you an impulse retail? What does that mean? Let’s talk about that. Impulse come from the term impulse purchases, which means I’m driving down the street. I see a Store that sells soaps and stuff like that and I go. Oh, my friend has a birthday. They really like soaps I’m gonna stop grab something for them.

So i’ll have A gift for them Or I drive by and I’m hungry. It’s lunchtime. I’m going to stop by a quick service restaurant. These businesses, the impulse businesses, they need the traffic. They need the visibility because the decision to go into the store is made on the spot as an impulse by their potential prospect.

Yes, of course, they might have repeat customers, but again, a lot of them depend on that drive by traffic and the visibility. A destination retail can be something like A dance studio, a dance studio, and nobody drives down the street and go, Oh, I see a dance studio. Let me stop by and have a lesson. This is a destination retail.

I have to have an appointment set up or it’s my class or it’s a group class that happens every Tuesday at 7 p. m. Whatever it is, I don’t just drive by and say, Oh, let me stop by the dance studio. So being the dance studio, I don’t have to be super visible. Of course, everybody enjoys visibility. Everybody likes it.

Sign to be seen in traffic, but the actual storefront is not what I need in my space. What I need is more room and I need cheaper rent because I’m taking a bigger space. So an elbow would be perfect for something like a dance studio because everybody knows where it is. It gives me a lot more space and landlords have a challenge usually leasing those, which means I can get that at a cheaper rate.

So are you a impulse purchase kind of retail client or are you a destination? Knowing that ahead of time, help us fine tune the spaces we look for you and help us get you the best deal possible to make sure that your business is in the ultimate location for you to enable your growth. That’s it for today.

I’m Joseph Kazan. I hope I answered the question for you. Are you an impulse or are you a destination retail? If you have any questions, put them down in the comments below. I’ll be happy to help. If you need help with anything retail in the Dallas Fort Worth market, we are your retail experts. Call us, email us, message us.

We’re here for you. Joseph Gozlan with Eureka Business Group. Thank you guys.