If you’ve decided to invest in retail property, congratulations. We at Melrose Realty understand how important a decision it is to decide to invest in retail properties. They can be some of the most exciting and profitable real estate investments out there.
They can also be some of the most time-consuming and attention-demanding properties for investors who haven’t decided to hire a property management agency.
For investors, retail properties will probably be some of their biggest investments and must be managed by experts in the field. The reason for this isn’t only because retail properties are busier than other properties with higher foot traffic and more maintenance, even those are major factors.
No, the major reason you should hire our team of experts is that retail properties also have some of the highest turnover rates of any rental property on the market. There are several reasons for this, but with high turnover rates comes a greater need for property marketing, lease negotiating, and tenant screening on a more frequent basis compared to other rental properties.
So, knowing this, deciding to hire a property management agency to handle your retail property, especially early in the investing process, is one of the best decisions you can make. Our team of experts will not only take care of your property, but our deep knowledge of the retail property market throughout Oklahoma will also help minimize property vacancies and reduce tenant transition times in the long run.
What is a Retail Property?
Put simply, retail property is any property where a business can sell a product or service directly to a consumer. Yes, that encompasses a wide variety of businesses that count toward retail services. Think about all the types of places you go to buy stuff.
- Grocery stores
- Hardware stores
- Clothing and apparel stores
- Automotive stores
See a trend with those examples? Yep, we’re talking about properties for stores.
But that’s not the only business that set up shop on retail property. You’ve also got restaurants, dealerships, and wholesale clubs.
The point remains, that all of these businesses sell a product or service directly to a consumer.
Types of Retail Spaces
When we say types of retail spaces, we don’t mean the types of retail business that may set up shop on your property. Rather, we’re talking about the size, location, number of units, etc, your property might offer as retail space options. The amount of rent you value your property at is often dictated by these factors.
- Standalone Property. These are retail properties that are single-tenant occupied and are on their own, often with their own parking lot or sharing one with a much larger store or shopping center.
- Shopping center. This type of property has more than one unit ( usually at least a handful) and is often anchored by one major store like a grocer or major retailer.
- Neighborhood Strip or Center. Another multi-tenant property is usually made up of small businesses with similar square footage.
- Mall. Much larger than a shopping center with more than one anchor store.
These are the major examples of the types of retail spaces out there investors are often looking for help to manage. But like office spaces, retail spaces can be found almost anywhere, like a former home that’s been converted to a neighborhood coffee shop or tavern.
Why Retail Property Can Have High Turnover Rates?
Unlike other commercial property, retail property has high turnover rates for one simple reason: retail businesses are the most likely new businesses to fail. This fact isn’t always based on the state of the current economy. Sometimes, a business is started by someone with a dream bigger than their experience level. Or perhaps their business model was flawed or didn’t take into account a possible economic downturn or lack of available labor.
The reasons retail businesses fail are numerous. We at Melrose Realty understand not every retail business will be successful. However, we also understand the importance of finding potential tenants that have both the capital and a long-term business plan to set themselves up for their best possible success, while also minimizing vacancies.
Our streamlined screening process on the front end will ensure you have the best possible tenant moving into your property. Our reliable and efficient rent collecting program will always ensure your money is collected and distributed to you quickly. Our Owner Statement reports will also provide you with a snapshot of how your property and tenant are fairings for each unit.
With Melrose Realty, you’re hiring professionals that balance both retail investors and their tenants’ needs, leading to long-term residency and maximum profits for all of your retail properties.
Book a consultation and we can address any questions you may have!