For many small businesses and start-ups that operate in the retail space, renting a retail unit is a major step in the growth, giving a business more opportunity to attract new customers, show its products, create a \u2018home\u2019, and boost its visibility and branding. It can also help a business to integrate into the local community and speak to customers face-to-face.
For small businesses that were previously operating out of a home, moving into a retail unit can also mean getting a lot of extra personal space back, as well as the ability to separate home and work more easily.
As a retailer, there are a number of different options available for renting a retail unit, and one of them is in a shopping centre. Renting in a shopping centre is different from renting in a high street, and in this article, we are going to take a look at some of the considerations that should be made by a retail business looking to rent a retail space.<\/p>\n\n\n\n
There are different benefits to renting a commercial unit in a shopping centre compared to on the high street.<\/p>\n\n\n\n
Shopping centres are often (although not always) located out of town, meaning that they become a shopping destination with potential customers often spending a number of hours there.
Some of the considerations to renting a retail space in a shopping centre include:
\u2022 They can be convenient in terms of parking, deliveries, and getting food in a space that is designed to be convenient for the business and the customers.
\u2022 Renting a retail unit in a shopping centre means that your business will be closer to other, possibly larger brands, helping you to maximise these opportunities. However, it also means that you have competition from existing brands and could also be impacted by the reputation of the other shops that are located within the same shopping centre.
\u2022 Rents can often be lower due to the shopping centre\u2019s out-of-town location (if applicable!).
\u2022 Unless it is a shopping centre that has a very high demand for space, some shopping centres can offer more flexibility in terms of the unit size and shape available.
Competition can be a great factor in terms of choosing a shopping centre unit. It is important to consider the other shops that are also located there to ensure that you have somewhere that the competition can help you, without \u2018drowning you out\u2019. You should also consider how well the shopping centre is attracting your target customers. It would not necessarily be useful, for example, to rent a retail unit in a shopping centre with shops aimed at young people looking for inexpensive clothes, if you are a small boutique clothes shop aiming at more affluent, older people.<\/p>\n\n\n\n
The other major alternative is to rent a retail unit on the high street, in a town centre. These tend to be more places where customers \u2018pop in\u2019, often spending less time in the vicinity.
Some of the aspects that should be considered if you are thinking of renting a unit on the high street include:
\u2022 Depending on the high street, there is more opportunity for good footfall at all times of the week. Other local businesses would help to create a bustling high street on weekdays as well as the weekends (unlike a shopping centre, where most of the footfall will be at the weekend).
\u2022 There are fewer large chain shops on the high street, which usually attract smaller, and often more independent businesses. Being amongst like-minded, similar-sized businesses can help to attract your target customer.
\u2022 Many shoppers admit to preferring to shop in the hustle and bustle of a high street, compared to the more sterile atmosphere of a shopping centre, looking to engage with smaller businesses, independent cafes, and other local activities that are going on (especially in the summer).
\u2022 Public transport to the high street is usually pretty good (especially for towns outside of the big cities). This gives more options for customers who don\u2019t drive.
\u2022 Potential customers can be more varied \u2013 unlike shopping centre \u2018destination shoppers\u2019, the high street can also be home to offices, houses, tourists, etc.<\/p>\n\n\n\n
Here at Boxpod, we have a range of different retail units to rent across the UK, in a range of different locations. If, however, you are looking for a unit in a shopping centre, there are some aspects that are different when it comes to the lease and its impact on the business.
Some of the aspects that you will need to think about if you are looking at leasing a retail unit in a shopping centre include:
\u2022 The lease term and your options for renewal. Shopping centres normally operate on relatively long-term leases \u2013 typically between five and ten years. Make sure that you consider this before you rent, and check the renewal options as well, in case you decide that you want to stay for longer. Consider the termination clauses as well \u2013 how easy is it to get out of if the economy takes a turn for the worse, do you have break clauses, for example?
\u2022 There can be additional costs in a shopping centre. Of course, rent will need to be paid, but you will also need to pay rates, probably a service charge (cleaning, security, lighting, heating, toilets, etc.), sometimes a percentage rent is paid (where a percentage of turnover is also paid), and deposits.
\u2022 It is sometimes the case that a business can add an exclusivity clause \u2013 if you are worried about direct competitors moving into the same shopping centre, which could impact your sales, you could consider asking for an exclusivity clause to prevent this.
\u2022 Many shopping centres have requirements relating to the visual impact and fitting out of the space, so make sure that you are aware of this, and its costs before you take on the lease.
\u2022 If it is the case that you need to shut your shop for a certain amount of time, check whether you will be still required to pay rent, or whether you can add in a rent cessor.
\u2022 Ensure that you are clear about who is responsible for repairs and maintenance.<\/p>\n\n\n\n
Different retail units work for different retail businesses, and for some, a shopping centre location would be the best place for them. For others, the high street would be a better option. <\/p>\n","protected":false},"excerpt":{"rendered":" For many small businesses and start-ups that operate in the retail space, renting a retail unit is a major step in the growth, giving a business more opportunity […]<\/p>\n","protected":false},"author":6,"featured_media":1724,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[5,4],"tags":[],"_links":{"self":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1721"}],"collection":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/comments?post=1721"}],"version-history":[{"count":1,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1721\/revisions"}],"predecessor-version":[{"id":1722,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/posts\/1721\/revisions\/1722"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/media\/1724"}],"wp:attachment":[{"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/media?parent=1721"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/categories?post=1721"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.boxpodcommercialproperty.co.uk\/blog\/wp-json\/wp\/v2\/tags?post=1721"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
It is important that you thoroughly research where you are looking to base your business, in terms of the business benefits for you, as well as the financial impact on your business.
Here at Boxpod, we have a wonderful collection of retail units for rent, so if you are a business looking for a space to show and sell your wares<\/a>, why not take a look at our website<\/a> and see what we have to offer?
We can also list your commercial unit<\/a> if you are a landlord looking for new tenants, so get in touch with us today!<\/p>\n\n\n\n