Many of the country's shopping centers have relied on certain anchor stores for decades. However, many of them failed to survive the 2010s. The retail industry took several hits during the last decade, and as a new decade begins, store owners, developers and property owners will need to rethink how they do business. Keeping up with online stores like Amazon has proved expensive for many retail giants who used to serve as profitable anchor stores for shopping malls and shopping centers across the country, including many here in California.
Any edge could make the difference for an Orange County business. When it comes to the retail industry, this often means paying attention to the data. Consumers are shopping differently than in years past, so it is vital for a business to pay attention to what the statistics and other data says about what people in a certain area want.
There is no denying that brick and mortar stores here in California and elsewhere are suffering due to the ease and convenience of online shopping. Retail locations across the country are closing, and property owners are trying to figure out what comes next. It may be possible to give new life to these empty retail developments by converting them to distribution centers and/or warehouse space.
When searching for the perfect rental property in Orange County, business owners often spend a great deal of time on the interior space and common area maintenance, or CAMs. However, when considering a space and negotiating a commercial lease, it is also necessary to pay attention to the exterior aspects of the space as well. Three of the most important exterior factors include access, parking, and signage and visibility.
After finding the right retail space, a potential tenant will then enter into the negotiations with the landlord. The reason that it is important to negotiate the terms of a commercial lease is that rent is not based on just the square footage of the space. Orange County entrepreneurs may want to make sure they consider the load factor before signing anything.
Opening a traditional brick and mortar business anywhere, including here in Orange County, requires some consideration and math. The last thing a new retail business needs is to get the wrong size space, which could ultimately cut into any profits a company could make. Too large a space could cost more in rent while too small a space could prevent additional sales.
Opening a retail establishment here in Orange County may entice some entrepreneurs. When they go to find a space for their new ventures, they often look to rent instead of buy. During the review of a commercial lease for a retail space, prospective tenants often check for provisions regarding paying a percentage of their sales to the property owner.
When Orange County entrepreneurs begin looking for space to rent for their new ventures, they may be in for a shock. The rent includes much more than just a base amount for the space itself. When negotiating a commercial lease, it is vital to understand what the real rental amount will end up being.
Owning commercial real estate in the Orange County area can be profitable, but only if it attracts quality tenants. When it comes to renting retail space, this could present a challenge since it can be difficult to know what future tenants may want. Some want to build out the space to suit their needs while others want a move-in ready space.
Finding the right Orange County rental for a business is not always easy, and securing a good deal for it is not either. Negotiating a commercial lease requires attention to detail. Without careful reading and review, a prospective tenant might not get what is needed out of the space.