A retail property pertains to real estate assets that serve as the front line of the business. In other words, they house that part of operation that involves the actual sale of goods and/or services. Common examples would be shops that sell anything and everything under the sun, shoe boutiques for example or a grocery. If you’re an entrepreneur and you’re looking at potential retail investments for sale that you can add to your portfolio, here are a few questions to ask yourself before taking the plunge.
- What are the needs that must be satisfied?
The purpose behind the acquisition must be clearly defined and spread out. This enables you to set your sights straight and avoid taking any detours. With so many options, it can be overwhelming so knowing your needs is a must.
- How much can we afford?
Financing for a big ticket item such as a retail space will require adequate cash. You should have a firm grasp of the digits not only in terms of how much will be needed to push through with the purchase but also how much you can and are willing to spend. Look into your financial standing. Where do you lie?
- What type of financing will be needed?
Most often than not, funding for a retail property investment is done by virtue of a combination of sources. It can be in the form of retained earnings, income or even credit.
- Does the location of this property spell benefits or trouble?
Location as they say is king. They speak a lot and affect a good chunk of the asset’s potential. There’s convenience, foot traffic, value appreciation, demand, safety and security and the list goes on.
- How much ongoing cost does it require?
Have a professional measure an accurate estimate of the asset’s ongoing costs, that is the repairs and maintenance expense requirements to keep the place functional and productive.
- Can it further exposure of the brand and its products?
Back on it with location, how well situated is the place? Check to see if there are complementary or even competitor establishments, shops and businesses beside, adjacent to or nearby the property. They can make or break the demand and your profitability in the long run.
- Which area or part of the market can it serve?
Last but not the least; you have to determine which part of your market the retail investments for sale will satisfy. Depending on your type of business, you’re going to have to make decisions based on your audience. Even the type and location of your store will affect it.