After several years of economic woes, the retail real estate industry is making a comeback. Rising property values and increased consumer confidence indicate businesses have great opportunities to capitalize on this upswing.
U.S. retailers have experienced a stunning resurgence in the second quarter of 2022, as The Wall Street Journal reports that vacancy levels hit their lowest mark since at least 15 years ago – with more stores opening than closing for the first time in over 25 years.
With a shift towards more dynamic and adaptable models, many physical stores in cities across the country are getting closer to achieving success.
Retail space has held steady, and office sectors are gradually transitioning to virtual work environments as interest rates climb upwards.
Despite market upheavals, retail space remains in hot demand, according to the National Association of Realtors – with seven consecutive quarters of rising sales.
The franchise industry is poised to benefit from the rebound in both consumer traffic and real estate opportunities. Storefronts can target those returning to work, while increased foot traffic will provide an invaluable boost for retail businesses in thriving urban areas.
Real Estate Investment Strategy
With the growing demand for retail real estate, investing in a franchise that includes it has become an incredibly profitable move. Now’s your chance to capitalize on this increasingly rewarding opportunity.
By investing in a business concept, you’re creating long-term opportunities for financial gains and acquiring an asset that provides you with viable options to exit the market.
Opening a franchise requires careful planning and strategy, whether starting from scratch or sprucing up an existing space. The right fit for your business is waiting; it just needs to be discovered.
With the ever-increasing demand for commercial real estate, franchisees are no longer restricted in their choices and can now rent space in coveted locations with greater ease. Have you considered leasing instead of buying?
Leasing a location can offer franchisees an alternative to the risk and expense of developing their own land or building. By partnering with a landlord, they gain access to prime business locations without facing huge capital investments upfront.
By leasing a location instead of building one, you can preserve your capital while still getting the space needed.
This means that not only do you have money saved for other aspects of starting up or managing your business, but it also allows you to expand quickly and easily open multiple locations.
Long Term Plan
When it comes to franchise ownership, are you ready for the long game? Are your sights set on rapidly opening multiple locations and capturing a larger market share? A sound strategy is key.
For small business owners, leasing could be the ideal route to take as it helps maintain your cash flow and Small Business Administration (SBA) lending options.
A smart way of starting a business is by also becoming a real estate developer– simultaneously owning both investments allows you more control over how much appeal the building has.
If you’re considering leaping into business ownership, there are a variety of exit strategies to choose from.
Try selling your business and keeping the building to become a landlord – or sell off the building and keep running your enterprise elsewhere. You could even invest in another real estate opportunity with devices produced by liquidating this original investment.
Property ownership can be a great long-term investment, but it’s important to think beyond the initial purchase. Expansion plans should include considerations for how to generate cash flow to open new locations down the road.
When it comes to investment decisions, take your time researching the options – whether an SBA-backed loan or a traditional one.
Not only will this decision affect you now, but it could also shape your future and that of your family. Therefore, evaluate all aspects carefully before making any moves.
It’s clear that Kiddie Academy Educational Child Care has proven that not all franchise opportunities require an old-fashioned “Main Street” address – in fact, they can become destinations themselves.
Visibility and accessibility are crucial for retail businesses – they must be on the main road to get the most out of their venture. After all, these two factors can make or break any storefront.
For businesses looking to become a destination, it’s not about providing an impulse buy. Instead, consider what these customers need – and ensure you provide it! Especially when we’re talking families in search of childcare solutions – if your services fit the bill, they’ll come running.
Kiddie Academy is expanding to the benefit of families everywhere. Their new locations offer convenience by providing complementary services like pediatricians’ offices, dentists and more – all in one stop.
By giving customers the convenience of scheduling multiple services and appointments close to home, a property can increase its competitive edge in the market.
Retailers look to franchise businesses as significant assets to their business. By having a complementary store nearby, both retailers and franchises can reap the rewards of improved mutual success.
Childcare centers can provide a strong connection between businesses and families, creating mutual benefits.
Twice daily visits of five days each week create the perfect opportunity for retail shops to benefit from increased customer exposure while giving parents an ideal chance to explore their local area.
The retail real estate market is rising, ushering in a perfect opportunity to dive into the world of franchising. This flourishing sector offers entrepreneurs an inviting atmosphere for launching and growing their business dreams. Now’s the time to make your mark on this exciting industry.
Photo: High Worth Citizen