– An aspiring cafe owner?
– An online boutique owner who seeks to build a retail presence?
– An investor who invests in commercial properties?
I believe, location is the critical success factor that drives one to attain all of the aspirations above.
For instance, if I’m a retailer, I would like to set-up my outlet at the right location to attract the right pool of customers. It helps to build my brand, increases visibility and enhances my credibility.
If I’m an investor, it would be easier to attract quality tenants if the location of my property is excellent. It ensures sustainable rental income, easier rental reversions and even better capital appreciation.
In this article, I’ll share five simple tips which are helpful to choosing a retail lot.
Tip #1: Ambience
Visitors are attracted to places where the ambience is pleasant.
Today, there are new retail lot developments which incorporated distinct concepts and the latest architecture designs into their layouts. Some have included greeneries, water features and pavilions to enhance the overall appeal of their developments.
It is an advantage to retailers. Personally, I would consider having a presence in an excellent development if I’m a retailer.
Firstly, I would be able to create a better impression with my customers. Secondly, these features aim to create an atmosphere where visitors truly enjoy patronising. Thirdly, it enhances productivity for my staffs and me. Sometimes, a beautiful view or a stroll in the park is what it takes to recharge and have great inspirations for work.
Tip #2: Theme & Tenant Mix
The theme of a development is a vital consideration when choosing a retail lot.
This is because the theme has an impact on the development’s tenant mix and the type of crowd that is attracted to it. I will consider a unit if it is located at a development which has a theme and the right tenant mix which are complementary to my business. This allows me to leverage on each other’s brands and strengths to enhance the credibility of my business.
Today, there is a growing trend of neighbourhood lifestyle malls in the Klang Valley. Often, they have an appropriate mix of food & beverage, retail, leisure, and service-based establishments. Presently, these malls have added conveniences to various communities surrounding them as they reduce the need for residents to visit major shopping malls which are located afar.
For example, let us say that I’m a Yoga Instructor. I intend to set up a Yoga Studio where local residents can practise Yoga. In this case, I may consider having a unit in a lifestyle mall situated close to various matured townships. This is because a lifestyle mall is usually established as a meeting place to relax and to promote health and wholeness.
Tip #3: Parking Spaces
Most Malaysians are drivers. Thus, parking spaces in a commercial area are part of the consideration.
For instance, limited parking spaces is a nuisance. In a congested area, finding a parking spot is time-consuming and unproductive. It breeds traffic congestion and frustration as there are drivers who prefer to double-park or even triple-park. Overall, it discourages potential visitors who place high regards to being convenient.
Understandably, this situation is unavoidable for matured commercial hubs which were developed in the past.
Presently, there are new projects which have ample of parking spaces. This is deliberate as developers envisioned a possibility of growing visitorship of its commercial area. It adds value to both retailers and customers as they can enjoy convenience in parking and thus, saving time, expensive petrol and be more productive.
Tip #4: Cleanliness
Isn’t this common sense?
Regrettably, it’s not well-practise. As I write, it is possible to find shopping malls with unbelievably filthy washrooms. It is a big turnoff to visitors. This is why successful shopping malls engage proper janitorial services to make sure their washrooms are always clean. Often, cleanliness is the million-dollar difference that separates shopping malls that thrive from those that are not.
Pest control is necessary. Obviously, I wouldn’t want a Ratatouille moment in my premise. If my customers value cleanliness as a virtue, I will avoid places situated close to a ‘Kedai Mamak’ or a ‘Kopitiam’ as they are not expected to have proper pest control and keep their premises squeaky clean.
Hence, as simple as it is, it is necessary to inspect all corners of the intended unit and its surroundings before agreeing to it.
Security is a great concern.
One of the prone areas to crime is parking bays, especially if they are not well-lit and patrolled. If a unit situated at one of these commercial hubs in a sleazy area, I would avoid it as it is perceived to be a high-risk area for crime.
Fortunately, there are several initiatives undertaken presently to improve the security of commercial areas. This includes installation of CCTVs, lightings, and security guards on buggies. They add value to both retailers and visitors as they are assured of their personal safety and the safety of their belongings.
What about Under Construction Units?
Obviously, we are not able to perform our due diligence if a unit is still under construction. Somehow, there are advantages of purchasing a new unit directly from developers.
First, you get the first mover advantage to own a unit in the area. When the area become mature, you reap the most benefits regarding rental yield and capital appreciation.
Second, developers do provide promotional packages for first-hand buyers to enjoy such as the free legal fee for SPA and loan agreement, that lower the transaction costs. If you are buying a subsale unit, the purchaser has to bear his the associated legal fees.
Although there is risk involved when a property is not completed yet, you can mitigate it by checking who the developer is and its track record. Well-established developers with award-winning developments do carry some weight as they have years of invaluable experiences in the property industry.
Let us say, we are assessing a unit at Sekitar26 Enterprise.
It is a project under Paramount Property which is easily accessible via six major highways i.e. KESAS, LKSA, Elite, LDP, NPE, and Federal Highway. So now, we have covered two things, the developer’s reputation and its location.
The following step is to check out its master plan, site plan, floor plan, potential tenant mix, security features, and of course, its pricing details. If you are interested in inquiring more about Sekitar26 Enterprise, please kindly sign-up the interest form below:
Find Out More about Sekitar26 Enterprise.
This article is sponsored by Paramount Property, an award-winning developer with more than 35 years of proven track record in the property development industry in Malaysia. Some of their other notable projects include Paramount Utropolis in Glenmarie, Greenwoods in Salak Perdana, Kemuning Utama in Shah Alam, and Sejati Residences in Cyberjaya.