Raleigh Retail Space
We’re all very fortunate to be a part of the vibrant Raleigh, NC economy. We have a bit of everything, with industry, retail, professional and other businesses all flourishing. In a strong economy, people enjoy good jobs, nice salaries, and in America we go out and spend when we feel prosperous.
Raleigh retail space is in high demand to meet the needs and desires of our local consumers. It’s easy to assume that high demand and eager consumers make retail space selection a breeze, but that shouldn’t be the case. The revenue enjoyed by a retail business is influenced by many factors. Location is one of the most important. MainStreet Realty Services has been a part of this community for many years, and we’re experts and understanding the ebb and flow of retail traffic in the Raleigh market. We help our clients to select the retail space best suited for their business, products and the local consumer demographic of their ideal customer.
When there are multiple properties for consideration in a good area location, we help our clients to evaluate each for suitability and revenue generation. There are a number of important criteria, such as display space, street orientation, parking, walking traffic, ease of access, structure type (free-standing or part of a mall or strip center), amenities and ambience to name some. The combination of some or all of these factors can make a huge difference in the sales the property will support. We’re experts at matching the business to the space for maximum revenue.
Raleigh Retail Space for Lease
Leasing Raleigh retail space is a competitive activity. The best spaces do not stay empty long, and this means that due diligence needs to move along at a fast clip, but it must be thorough as well. MainStreet Realty Services has worked with thousands of lease space clients, and we understand the importance of getting the most out of the retail space. It’s critical that the right property be selected, but also that the right lease and terms be agreed upon. This is complicated a bit, as there are different types of retail space leases.
The Gross or Full Service Lease is an all-inclusive single payment lease. The tenant pays the lease amount, and the landlord pays most or all of the expenses associated with the property and occupancy. These include taxes, structure insurance, janitorial, utilities and maintenance.
This can be the right structure for a tenant’s business, but there are some considerations that are important if this approach is taken. What is the quality of services, such as janitorial? How often and at what times of day are these services provided? If maintenance, particularly emergency type repairs, is required, how soon can the tenant expect service to arrive? While the gross lease can be the right choice, we help our clients to get the necessary questions answered.
The Net Lease apportions some of the costs associated with the property, structure and occupancy between the tenant and the landlord. The tenant pays a lower flat rate lease, but will be agreeing to pay a portion of some expenses. There are several forms of the net lease, notably called Single Net (N), Double Net (NN) or Triple net (NNN). Each apportions the responsibility for payment of property taxes, janitorial, maintenance, repairs and utilities.
There are valid reasons for entering into a Net Lease, but the tenant should be aware of the benefits versus the drawbacks. MainStreet Realty Services leaves no stone unturned in the due diligence for our clients so that they enter into the right lease, and if it is a Net Lease, the one with the best terms for their business.
This lease is common in retail spaces in malls and high traffic retail buildings. The idea is that the landlord can take actions that can increase traffic for all tenants, which increases their sales. It is popular with some tenants because the structure allows them to pay a lower base rental payment and then at some dollar amount in sales they pay a percentage of everything over that amount to the landlord.
MainStreet Realty Services works with clients every day in negotiating the best percentage lease for their business. There are cautions, such as are returns and allowances deducted, and are there other special classes of income that should be excluded?
Raleigh Retail Space for Sale
Keeping all of those different types of leases in mind, it is clear that the sale or purchase of a retail space is a complex process if done properly. Due diligence for both the buyer and seller are specialties of MainStreet Realty Services. The value of a Raleigh retail space or building isn’t just a matter of grabbing some comparable past sales and running some numbers.
First, what is a good comparable property? It is partly location, partly how long ago it sold, partly how similar in size and layout, but also very much about the types of businesses that will end up being tenants and the consumer demographics for customers. Whether buying or selling Raleigh retail space, we’re the local experts and our clients get the most thorough due diligence and market information necessary for good decisions.