While the real estate market has been slow for the past few years, the demand for retail commercial real estate seems to be heating up as many national retailers are looking to expand into new developments. This is particularly true in markets located across the Southeast United States. When looking for a retail property development, there are several factors that you should consider when choosing a site.
The first factor that you should consider when choosing a site for a retail property development is street traffic. The vast majority of retail shopping is done by convenience as drivers or walkers end up going by the store. You should look for an area that is located near a busy intersection or is near a major highway, which will bring plenty of traffic to your site on a regular basis. Retail tenants will take the traffic counts into consideration when choosing a site selection.
Another factor that should be considered when you are choosing a site for a retail property development is income demographics in the area. The value of a retail real estate development and the rents that you can charge to tenants are typically highly correlated to an area with higher median incomes. This is because higher-end stores, who pay a premium on rent, will be able to operate a store profitably in these markets.