Four Times "Location" Isn't The Most Important Part Of A Retail Space
"Location, location, location" -- it's been so often repeated that it may as well be a real estate mantra. But while location can be incredibly important for real estate (especially residential real estate), there are times when it isn't as important for a retail space. In fact, there are some very specific situations in which you may want to consider other aspects of a space entirely.
When "Off the Beaten Path" Locations Are Significantly More Affordable
Sometimes you need to make a judgment call. There are areas in which just moving a few blocks north or south could save you thousands of dollars in rent money every month. You need a cost-benefit analysis of what being in a better location will truly bring. Remember: it's always possible to start small with a business and then move to a better location when you have more funds.
When You Operate in a Particularly Niche Market
If you operate in a niche market that caters primarily to enthusiasts, you may be better off finding the cheapest place rather than the most well-located. Customers looking for niche products are far more likely to go out of their way for them -- saving you money. Moreover, when it comes to a niche product, you're far less likely to benefit from through-traffic and exposure.
When a More Unique or Interesting Location May Be Available
Sometimes it's not about the location -- it's about the lot. There are some unique lots available, such as free-standing lots that have already been built out, that may have an advantage over lot in a different location. There are also lots that have a lot of history, have a unique appearance, or are just in a strange but memorable place. These have inherent value all to themselves.
When Your Current Market Locations Are Already Flooded
Finally, though there may be areas with a high population and a lot of through traffic, they may already have been flooded by businesses in similar markets. These businesses will already have been entrenched and have a "home field" advantage; going head to head with them may not be advisable.
Creating a successful business is about far more than just finding the right location. Many businesses fail -- and while location can contribute, it's more often due to running out of funds. If it comes down to purchasing or leasing "the best" space and having enough liquidity... liquidity will almost always win out. For more information or assistance, contact companies like The Schueler Group.