As a retail leasing broker, it is interesting to observe commonalities in users of businesses actively expanding retail uses.
If you are involved in the retail commercial real estate industry and are looking to fill space, this blog will give you a few ideas for identifying potential uses for your vacancies.
1) Bin stores
Bin stores are growing in numbers as online shopping increases. Inventory consists of large lots of returns from online retailers. Most bin stores have a similar concept that there is a different price point each day of the week.
Considering bin stores receive a large quantity of random merchandise, the bin store experience can be associated with a treasure hunt. Bin stores are certainly not the first to participate in this treasure hunt mentality. However, the single-price concept mixed with the treasure hunt style is new.
An advantage to landlords leasing to bin stores is that this concept uses a decent amount of square footage. The bin store’s size can range from 10,000-30,000 SF and is an excellent potential tenant to fill a box space. Additionally, bin stores do not typically have an expensive build-out, which can mean little to no tenant improvement dollars.
Bin stores can be a fantastic solution for some landlords and bring traffic to centers. However, remember that maintaining a neat appearance can be challenging due to the massive amount of inventory bin stores go through.
2) Beauty related
I have always been intrigued by the extent that some people will go through concerning their appearance. These services include but are not limited to laser hair removal, laser vein removal, eyelash extensions, body sculpting, waxing, threading, & tattoo removal. Microblading, a semi-permanent technique for enhancing one’s eyebrows’, is another growing service. Square footage for most of these uses’ ranges from 1,000 to 1,500 SF.
Medtail, medical-related uses in retail centers, is a use that is present and growing. Urgent care facilities, primary care doctors, general dentistry, children’s dentistry, orthodontics, optometrists, and even veterinarians are expanding into shopping centers. One driving factor is the ease for patients to go to the doctor’s office and purchase their groceries in the same center. The type of medtail determines the square footage, varying drastically from 1,500-5,000 SF.
Chicken-focused concepts have been rising for the past few years and are still growing. The leading flourishing brands specialize in hot chicken, chicken wings, chicken sandwiches, and chicken strips. Some of these concepts require drive-thrus, while others do not. Sizes of space leased by chicken-focused companies can range from 1,200-3,500 SF.
Saving the sweetest use for last, dessert brands are currently increasing. Most dessert spaces are in the 1,200-1,500 SF size scope. Cookies, ice cream, crepes, baked goods, and donuts are the main sweet concepts I see expanding.
There are many more than these five uses to share. So, stay tuned for my future blogs, where I will expand on additional growing business categories.