Linear Retail Blog

Commercial Real Estate Comics

Posted by Diana Podaski on Wed, Feb 22, 2017 @ 13:02 PM

Linear Retail Comic Strip Center

We try to find humor in our daily challenges, our annoyances or just things that we find funny in our daily lives in the retail real estate industry. We try not to take ourselves too seriously. If we generate more smiles than groans, cringes, head scratches or blank stares, we will feel as though we've succeeded. We try to generate a new cartoon once a month. 

 

Restaurant Row Comic - A daily conversation you may find yourself in with coworkers

Restaurant Row Comic

 

Trophy Property Comic  - This one may resonate with the Baby Boomers more but this was very common
Trophy Property Comic

 

Tinted Windows Comic - A close relationship with the vendor and architects

Tinted Windows Comic

 

Halloween Comic - When Batman needs some more personal branding

Halloween Comic

 

ICSC RECon Comic - Flashy guy

ICSC RECon Comic

 

Omni-channel Retail Comic - Home shopping

Omni-channel retail comic

 

ICSC RECon Comic - Uber Tut

ICSC RECon Comic

 

Coming Soon Sign Comic - Asterisk

Coming Soon Sign Comic

 

Budget Season Comic - Sorry, fully booked

Budget Season Comic

 

Undercover Comic - Off Market Deal

Undercover comic

 

Marketing Comic - End Caps Available

Marketing Comic

 

Leasing Comic - Anchor Lease Negotiations

Leasing Comic

 

ICSC RECon Comic - Five Cap

ICSC RECon comic

 

ICSC RECon Comic - Rookie

ICSC RECon Comic

 

Leasing Comic - Sammy's Subs

Leasing Comic

 

Crowdsourcing Comic - Rent is due

Crowdsourcing comic

 

Food Trucks Comic - No parking

Food Trucks Comic

 

Leasing Comic - NNN Confusion

Leasing Comic

 

Architect Comic - Unicorns and Rainbows

Architect Comic

 

Retail Comic - Hold The Cheese

Restaurant Comic

 

Lifestyle Centers Comic - Everything You Need

Lifestyle Centers Comic

 

Acquisitions Comic - Seller Logic

Acquisitions Comic

 

Commercial Real Estate Comic - Short Form Lease

Commercial Real Estate Comic

 

Retail Comic - Six Months Lease

Retail Comic

 

Nail Salon Comic - Nail Salon Surprise

Nail Salon Comic

 

Online Shopping Comic - A Case For Brick & Mortar

Online Shopping Comic

 

Broker Comic - Broker of the Year

Broker Comic

 

Sustainability Comic - Sight Line Struggles

Sustainability Comic


We hope you've enjoyed our commercial real estate comics. 

NOTE: Readers of our comic blog are free to share, copy or use our cartoons, we only ask that you attribute any public use to Linear Retail Properties with a link to our website www.linearretail.com


 

Topics: Comic Strip Center

Common Commercial Real Estate Terms

Posted by Diana Podaski on Wed, Feb 22, 2017 @ 13:02 PM

Market.jpg

There are many shopping center and commercial real estate terms and acronyms to be aware of but here is a common list to get you started. The list is broken up by 5 main departments in the industry/Commercial Real Estate: Leasing, Development, Construction, Marketing and Operations.

LEASING

  • Triple Net Lease - A lease in which 100% of all taxes, insurance, and maintenance associated with a shopping center is paid by the tenant
  • Co-tenancy - A term that refers to a clause inserted into a tenant's lease stipulating that a reduced rent or no rent be paid until an agreed-upon percentage of the center is occupied
  • LOI - Letter of Intent: A document submitted prior to a formal lease serving to delineate the intentions between the landlord and the tenant
  • Mom-and-Pop Store - A store whose owners own only that single store

DEVELOPMENT

  • Mixed-use Center - Centers typically combining three or more revenue-producing uses such as retail, office, parking, restaurants, hotel, residential, and entertainment
  • Pad - The exact parcel of land on which a store's building stands
  • Parking Ratio - The relationship of space used for parking and necessary vehicular and pedestrian movement to land area covered by buildings or space within the buildings. This is usually expressed in the number of car spaces per 1,000 sf of rentable area
  • Critical Mass - Refers to the high number of retailers and square-footage needed in one center or in one market to create enough excitement to attract a high volume of shoppers

CONSTRUCTION

  1. Vanilla Box - A space partially completed by the landlord based on negotiations between the tenant and landlord. Typically this means HVAC, walls, floors, stockroom, basic electric and plumbing, rear door and storefront
  2. LOD -  Lease Outline Drawing: Material prepared for the tenant, showing the demised space and its relation to adjacent spaces and the center as a whole; electrical, plumbing, HVAC, and waste line entry points are identified, but existing partitions and fixtures are usually not shown.
  3. Replacement Cost - Today's cost of construction, without considering depreciation
  4. COI or Certificate of Occupancy - A document issued by a local government to a developer permitting the structure to be occupied by members of the public. Issuance of the certificate generally indicates that the building is in compliance with public health and building codes

MARKETING

  • ROI - Return on investment
  • Line Art - Illustrative material other than photographs
  • Fact Sheet - Material used to present essential facts about a space for lease, property of shopping center most often in a non-narrative outline
  • SEO - Search Engine Optimization: Improving the visibility of a website or web page in search engines like Google organically (un-paid)

OPERATIONS

  • CAM - Common Area Maintenance - The amount of money charged to tenants for their shares of maintaining a center's common area. Some items include electric, security and maintenance of the parking lots
  • HVAC - Heating, Ventilation, and Air-Conditioning
  • Emergency Book - A pamphlet given to new tenants that gives important phone numbers and outlines procedures for various emergencies
  • Irregularity Reports - Written documentation of irregular or unusual conditions noted by security officers

 

Topics: Leasing Resources

How Much Space You Should Lease For Your Retail Business

Posted by Bill Beckeman on Wed, Oct 17, 2012 @ 10:10 AM

I would say that you need exactly 1,850 sq. ft., 2,307 sq.ft. or 4,202 sq.ft.  OK, you’re on to me – those are the actual measurements of spaces we are currently seeking to lease in our portfolio.  But seriously, how do you decide how much space you should lease?

average retail space sizes

The right answer starts with the amount of space that maximizes the profit from a particular location.  Unfortunately, that’s not a simple analysis.  So, it’s also helpful to understand what’s the minimum amount of space you can fit your business into because that might be all you can really afford, or it might be really hard to figure how much incremental profit will come from any additional square footage that you lease.  That being said, it’s usually difficult, if not impossible, to expand your operation after you sign the initial lease, so if you end up determining after the fact that you should have leased more space, you’ll probably be out of luck unless you move (and somehow deal with the lease that you just signed and the expense to relocate). 

A further consideration is the availability of quality spaces in the area where you plan to locate. The qualities of the specific location are usually more important than the precise size of the space you desire and you will be faced with trade-offs based upon what spaces are actually available for lease.  But you first need to know at least an approximate size range for your business before you can begin the site selection process. (We'll help you with this with the chart below.)

STEP 1

If you haven’t prepared at least a basic store layout, developing one is your first step.  You should probably take a crack at sketching it out yourself.  You can simply use graph paper and a ruler or for the more technologically inclined you might want to try laying your space out using Sketchup or SmartDraw.  It will get you to start thinking about things such as:

  • Where do you want your entry door relative to your cash registers or reception desk? (think about it from a customer viewpoint as well as from a security perspective)
  • How will you maximize usage of your valuable window-line? (what do you want customers outside to see in order to lure them into your store?)
  • How will your customer circulation work?  What items do you want in front the front of the store and how will they be displayed?
  • Where will your storage space be located?
  • How/where will you take deliveries? 
  • How will you handle trash, etc.?

You might consider adding to your reading list: Inside the Mind of the Shopper, The Science of Retailing, by Herb Sorensen, Ph.D.  It’s a rather academic, although very well-researched and thought-provoking book about grocery store layout and store design.  You’ll learn why most grocery store entry doors are on the right and why customers typically navigate stores in a counter-clockwise direction, among other interesting findings that are likely also applicable to other store types.

STEP 2

Once you’ve developed a sketch or two to reflect your vision and determined the approximate size(s), you can compare your initial findings with other businesses that you already know.  Below is a table including categories of retailers and service providers in New England with typical size ranges and averages for well-known retailers.

The table includes the retailers in each category with the greatest number of stores in our region, with the average square footage numbers rounded to the nearest 100 sq.ft. The typical size ranges reflect the range for approximately 90% of all operators in each category.

 

Business Category

  Buiness Name

 

Average Store Size  (Sq. Ft.)

Typical Size Range (Sq. Ft.)

 

 

 

Convenience Stores

 

1,400 – 2,800

  7-Eleven Food Store

2,600

 

  Cumberland Farms

2,400

 

  Richdale Convenience

2,200

 

Eye Care

 

500-3,700

  Lenscrafters

3,700

 

  Pearle Vision

2,300

 

  Cambridge Eye

2,400

 

  Cohen Fashion Opticals

1,500

 

  For Eyes

1,700

 

Wireless Stores

 

1,200-2,900

  Verizon Wireless

2,900

 

  Metro PCS

1,500

 

  AT&T Wireless

2,200

 

  T Mobile

2,000

 

  Sprint

1,900

 

  Wireless Zone

1,600

 

  Best Buy Mobile

2,200

 

Coffee/Doughnut

 

                          (800-2,200)

  Dunkin Donuts

1,900

 

  Starbucks

1,800

 

  Honey Dew Donuts

1,800

 

  Marylou’s Coffee

1,400

 

Pizza

 

(More Information)

  Papa Gino’s

 

 

  Domino’s

 

 

  Sal’s

 

 

  Pizza Hut

 

 

  Pizzeria Regina

 

 

  Papa John’s

 

 

  Little Caesar’s

 

 

Mexican/Burrito

 

(More Information)

  Chipotle Mexican Grill

 

 

  Qdoba Mexican Grill

 

 

  Boloco

 

 

  Moe’s Southwest Grill

 

 

  Taco Bell

 

 

Quick Serve Sandwiches

 

(More Information)

  Subway

  

 

  D’Angelo

 

 

  Panera Bread

 

 

  Quizno’s

 

 

  Cosi

 

 

Burgers

 

(More Information)

  McDonald’s

 

 

  Burger King

 

 

  Wendy’s

 

 

  Five Guys

 

 

  b. Good

 

 

Ice Cream and Yogurt

 

(More Information)

  Dairy Queen

 

 

  Coldstone Creamery

 

 

  Ben and Jerry’s

 

 

  Pinkberry

 

 

  Orange Leaf Frozen Yogurt

 

 

Dry Cleaners

 

(More Information)

  Anton’s Cleaners

 

 

  Best Cleaners

 

 

  Zoots

 

 

  Lapels Dry Cleaning

 

 

  Dependable Cleaners

 

 

Nail Salons

 

(More Information)

  California Nails

 

 

  Hollywood Nails

 

 

  Pro Nails

 

 

  MiniLuxe

 

 

Hair Salons/Hair Cutters

 

(More Information)

  Supercuts

 

 

  Cost Cutters

 

 

  Hair Cuttery

 

 

  Dellaria Salon

  

 

  Great Clips

 

 

  Fantastic Sam’s

 

 

  Snip-its

 

 

Health& Fitness Services (small format operators)

 

(More Information)

  Get in Shape for Women

 

 

  Fitness Together

 

 

  Curves for Women

 

 

  Anytime Fitness

 

 

  KoKo Fit Club

 

 

(The above data was compiled mostly from KeyPoint Partners' proprietary retail research. KeyPoint Partners offers a variety of interesting publications about retail real estate I'm sure you will find of interest.)

STEP 3

There’s still much work to do on the store planning and layout front but the real work will begin when you start to evaluate specific spaces.   Accordingly, it makes sense to identify a retail space architect/interior designer who can help you lay out specific spaces once you zero in on one or two locations.  The best spaces that come available for lease often lease up quickly, and having this space planning relationship lined up in advance can help you be ready to act quickly. 

If you find yourself considering one of the spaces we have available for lease in our portfolio, we can help point you to such firms who can assist you.   We have found that hiring an architect, although not always necessary, is money well-spent to avoid later surprises, unless you happen to be a code expert and know the local bylaws that will come into play.

STEP 4

So now you’ve figured out the ideal size for your store, selected a target location, hired an architect, developed an initial space layout and are now ready to lease the space.  Almost.  How much rent should you pay? What other lease terms are important to address?  Assuming you started the whole process by making sure you had the financial resources lined up to launch your new business, which is mission number one, you may still need some help to get across the finish line.  Maybe it’s a great topic for a future blog, although I am probably too conflicted to really help you with these issues.  Lining up an attorney who specializes in commercial/retail real estate along with an experienced retail broker or advisor to represent you might be a better plan.

To receive the full white paper and chart please click the button below.

Free White Paper and Store Size Chart button

Topics: commercial real estate, Resources For Retailers, retail real estate, independent retailer, selecting retail space, Leasing Tips, store sizes, retail store sizes, space requirements, sf needed for retail store, store dimensions, average store size for convenience store, average store size for coffee shop, average store size for pizza shop, average store size for mexican restaurant, average store size for burger restaurant, average store size for yogurt store, average store size for ice cream store, average store size for dry cleaner, average store size of nail salon, average store size for fitness services

How To Lease the Right Retail Space For Your Retail or Service Business

Posted by Bill Beckeman on Fri, Jun 03, 2011 @ 13:06 PM

So maybe you missed out on tying up a domain name like shoes.com. And anyhow, you’re not a web master seeking to create an Internet business that you can run from your bedroom.  You actually enjoy interacting personally with customers and you’ve already got a pretty solid business plan or are possibly seeking to expand an established business. You’ve lined up sufficient capital, done some research and begun looking at vacant storefronts, but aren’t sure how to decide where to land. So how do you select the right location to lease for your retail store or consumer service business?

 Independent Retailer xsm

Below are 10 steps to follow that will help you land the right retail space for your business:

1. Pick a town or towns that you already know pretty well

If you already know the character of a town, its people, their travel patterns and shopping habits, you’ll be much better off.   Having a network of pre-existing relationships and local contacts will help you start on the right foot, hopefully with lots of referrals from friends and positive local and social media feedback. 

2. Evaluate your potential customer base

Run demographic analyses for locations with similar successful businesses that you are familiar with and compare them to locations you are considering. A broker who specializes in representing retailers can do this for you (see #4). Consider the shape and reach of your trade area – how far will customers travel to visit your store? Is the local population growing or changing significantly? How is it changing? Do the changes create more opportunity or greater risk? Look at the daytime population. How much will your business benefit from daytime customers vs. resident population? Does the income profile of the market align with the expected pricing of your product or service offerings?

3. Evaluate your potential competition

For each location or market you are considering, map out your competitors and honestly evaluate how much of their business you will be able to steal and/or how much potential there may be to expand the pie to meet unsatisfied local demand or looming market growth. Don’t forget to consider the potential for future competition. Where might a new competitor locate that would hurt your business significantly?

4. Consider hiring a retail leasing broker to represent you

A good broker, who specializes in retail real estate, particularly representing national retailers, will have insight regarding the selection criteria used by successful national retailers. You should take advantage of the experience they have evaluating the factors that matter most to the pros. It’s also likely that they have already compared and contrasted the shopping centers in your target market for other retailers. They will also have relationships with the owners of the best shopping centers. These relationships can be vital given that there is always strong competition for the best spaces.

5. Start evaluating specific availabilities

You are now ready to start assessing individual spaces that meet your size criteria within your chosen market. First, consider how the space will ideally lay out. How much storage area will you need? If the space is narrow and deep, can you create an effective layout? How much window-line do you need? Will you need special loading/delivery capability, etc.

6.  Evaluate specific property and space attributes (more)

7.  Develop initial sales projections for the spaces that meet your criteria (more)

8.  Solicit lease proposals for targeted spaces (more)

9.  Compare proposals, compare landlords and compare management (more)

10.  Select a space, negotiate your best deal (more)

For the complete list of 10 Steps on Leasing the Right Retail Space with details, written by our CEO, simply click below:

 Selecting Retail Space Tips

Topics: Resources For Retailers, retail real estate, selecting retail space, Leasing Tips, Boston, consumer service business