When leasing property for business, you’ll likely come across two terms: “retail space” and “commercial space.”While both terms represent a location thatcustomers can physically visit to conduct a business transaction, they are not exactly the same. It pays to know the difference between these two concepts for you to better discern which among them you prefer for your property.
What is a retail space?
Retail space is a type of commercial property that encounters a large amount of customer traffic throughout the day. Profiting from this type of space requires keeping that traffic consistent. To do so, the business location must be somewhere that’s highly accessible to its target customers. That’s why retail properties are often found in areas frequented by both human and vehicle trafficlike busy roads or shopping malls.
When shopping for a retail space for lease in St. Louis, make sure that:
- The store’s location is easy to find and get to;
- There is ample parking not only for clients and customersbut employees, as well;
- The marquee, if not the store itself, is easily seen by passersby; and
- The store’s facilities are clean, organized, safe, well-lit, and welcoming to customers.
What is a commercial space?
Commercial space is the term for a property that’s meant for income generation. But to distinguish the retail space from the office space, both of which are commercial spaces, the office space focuses more on maximizing employees productivity and efficiency than attracting customers. As such, expect a lower rate of customer traffic if you’re looking for office spaces for rent in St. Louis, MO. These offices are usually found in a building’s higher floors or on side streets for minimal distraction caused by the typical urban cacophony of noise. Some may even be tucked away in residential areas.
To get the most out of an office space, it should be:
- Easy to get to for employees who commute;
- Equipped with all the systems necessary for employees to function (e.g., electrical, telecommunications, IT);
- Adequately sized to house the company’s existing workforce; and
- Clean, organized, safe, and capable of promoting a healthy working environment for workers.
How retail and commercial real estate prices differ
The differencesinreal estate prices often boildown to the property’s location, appearance, and accessibility. That’s why property in a high traffic area withhigh visibilityand accessibility will be more expensive than a similar property in areas that cannot easily be reached on foot.
What few people know is that the purpose of the property – whether it’s intended to be a retail or officespace – also becomes a factor to one’s profit margins. Some investors who don’t know the difference between the two often end up paying more for their lease. As a result, they get smaller profits for their investment. That is why it is best to consult with real estate professionals who specialize in commercial properties in your chosen area. That way, you get educated advice about your planned investment.
If you’re a first-time investor shopping for commercial or retail space for rent, you cannot afford to be clueless on the property you want to develop. Seek the servicesof dependablereal estate agents with years of experience dealing with commercial properties. In St. Louis, the Cardinal Realty Group is just the team of experts you need. Give them a call at 636.225.0385 or email them at Hal(at)CardinalRealtyGroup(dotted)com today.