Welcome to Part 2 of the series on finding the perfect retail space in Singapore. In Part 1, we discussed the key factors to consider when evaluating a retail space, including location, unit size, rent and GTO. In this installment, we will focus on the the condition of the space, lease terms, competition and complimentary businesses, amenities, zoning and future development plans.
Whether you’re a seasoned business owner or just starting out, we hope this guide will help you navigate the process of finding the right retail space in Singapore and ensure the success of your business. So, let’s get started!
Condition of Space
The condition of the retail space is an important factor to consider when looking for a space to rent. It’s important to inspect the space and make sure that it is in good condition and that any necessary repairs or renovations can be made.
When inspecting the space, it’s important to look out for the following:
- Structural integrity: Look for any signs of damage or wear, such as cracks in the walls or ceiling, or water damage.
- Electrical and plumbing: Make sure that the electrical and plumbing systems are in good working order. Check for any exposed wires or leaky pipes.
- Lighting: Ensure that the space has adequate lighting and that it can be easily changed or upgraded as needed.
- Flooring: Look at the condition of the flooring and see if it needs to be replaced or repaired.
- HVAC: Inspect the heating, ventilation, and air conditioning systems to ensure that they are in good working order.
- Ceiling: Check the condition of the ceiling and see if it needs to be repainted or repaired.
- Fire safety: Make sure that the space is equipped with fire alarms and sprinklers, and that they are in good working order.
- Accessibility: Inspect the space to ensure that it is accessible for people with disabilities.
Keep in mind that any repairs or renovations that need to be made to the space will be the responsibility of the tenant. It’s recommended to consult with a contractor to help you understand the cost of any necessary repairs or renovations before making a decision.
Do discuss with the landlord the responsibility of repairs or maintenance and make sure it’s clearly stated in the lease agreement.
Lease Terms
Lease terms are the conditions and agreements that are outlined in the lease agreement between the landlord and tenant. It’s important to review and understand the lease terms before signing a lease, as they can have a significant impact on your business.
When reviewing lease terms, it’s important to look out for the following:
- Length of the lease: The length of the lease will determine how long you are committed to renting the space. Longer leases may provide stability for your business, but shorter leases may provide more flexibility.
- Renewal options: Check if there are any options for renewing the lease, and under what conditions.
- Rent increase: Review the terms for rent increases, and make sure you understand how and when the rent will be increased.
- Maintenance and repairs: Review the terms for maintenance and repairs, and make sure you understand who is responsible for maintaining and repairing the space.
- Restrictions: Review any restrictions on the use of the space, such as operating hours, signage, and subletting.
- Assignment and subletting: Check if there is any restriction on subletting or assigning the lease to another party.
- Termination: Review the terms for terminating the lease, and make sure you understand the conditions under which you can terminate the lease.
- Insurance: Review the terms for insurance, and make sure you understand the insurance requirements for the space.
Consult with a lawyer or a business consultant to help you review and understand the lease terms, and to negotiate any terms that may not be favorable for your business.
The lease terms can vary depending on the type of property, the location, the size of the space and landlord profile (whether its a corporate or individual landlord). It’s important to read and understand the terms of the lease thoroughly before signing, and if you have any questions or concerns, don’t hesitate to ask for clarification.
Competition and Complimentary Businesses
Competition and complimentary businesses are important factors to consider when looking for a retail space to rent. Competition refers to other businesses that are offering similar products or services in the same area, while complimentary businesses are those that offer complementary products or services.
Competition – research the market and understand the existing businesses in the area. Identifying your direct competitors and analyzing their strengths and weaknesses can help you understand the market and make informed decisions about your business.
Complimentary businesses – look for businesses that complement your own, rather than compete with it. For example, if you’re opening a coffee shop, complimentary businesses would be bakeries, cafes, or bookstores. These businesses will attract similar customers and can drive more foot traffic to the area, which can benefit your business.
Examples of competition and complimentary businesses:
- A clothing store would have competition from other clothing stores in the same area, but complimentary businesses could be shoe stores, jewelry stores or accessories stores.
- A restaurant would have competition from other restaurants in the same area, but complimentary businesses could be bars, pubs, or night clubs.
- A fitness center would have competition from other fitness centers in the same area, but complimentary businesses could be sports stores, nutrition stores or health clinics.
Keep in mind that competition and complimentary businesses can change over time. It’s recommended to keep an eye on the market and adjust your business strategy accordingly.
Having competition doesn’t necessarily mean that it’s a bad thing in some cases, it’s all about how you position your business and how you can differentiate yourself from the competition. For example, you will find competition businesses in certain concept malls like Queensway Shopping Centre (for sports wear and accessories), and Sim Lim Square (for computers and electronics) where the mall attracts customers looking for a certain product.
Amenities
Amenities refer to the additional features and services that are available in or near the retail space that can make it more convenient and attractive for customers and employees. When looking for a retail space to rent, it’s important to consider the amenities that are available and how they can benefit your business.
Here are some examples of amenities that you should look out for:
- Parking: Adequate parking is important for customers and employees. Look for a space that has ample parking or is near public transportation.
- Public transportation: Being near public transportation options such as bus stops, train stations, or subway stations can make it more convenient for customers and employees to reach the space.
- Wi-Fi: Having Wi-Fi available in the space can be beneficial to both customers and employees.
- Utilities: Make sure that the space has access to necessary provisions such as electricity, water, and gas that your business requires.
- Safety and security: Look for a space that has appropriate safety and security measures in place.
- Food and beverage options: Having food and beverage options near the space can be beneficial for employees and customers.
- Virtual Reality or Augmented Reality experiences: This can be an extraordinary way to stand out from the competition and make your business more memorable. You could use this technology to showcase your product or service in a unique and interactive way.
- On-site childcare: Having on-site childcare facilities can be an extraordinary way to attract employees with children and help them balance their work and family life.
- Rooftop terrace or garden: Having a rooftop terrace or garden can be an extraordinary way to offer a unique and relaxing experience for customers and employees.
- Co-working spaces: Having a co-working space within the retail space can be an extraordinary way to attract a wider range of customers and generate additional revenue. This can be especially beneficial for businesses that cater to entrepreneurs, freelancers, or remote workers.
- Fitness or wellness center: Having a fitness or wellness center within the retail space can be an extraordinary way to attract health-conscious customers and employees.
- Event space: Having an event space within the retail space can be an extraordinary way to host events and generate additional revenue. This can be especially beneficial for businesses that offer products or services that are well-suited for events.
Keep in mind that the amenities that are important for your business will depend on the type of business you have and the needs of your customers and employees. It’s recommended to make a list of the amenities that are important for your business, and to look for a space that offers as many of those amenities as possible.
Zoning and Future Development Plans
It is good to be aware of any future development plans for the area where the space is located. This is because future development plans can also have an impact on your business.
For example, if there are plans to rezone an area from residential to commercial, it could potentially lead to a decrease in foot traffic and sales for your business on weekends. On the other hand, if there are plans to develop new retail spaces or other commercial properties in the area, it could lead to an increase in competition for your business.
Furthermore, it’s also important to consider the potential impact of future development plans on the neighboring areas, as it could also affect your business. For example, if there are plans to develop a new residential or industrial area in the neighborhood, it could lead to an increase in noise, odors, or traffic, which could negatively impact your business.
Conclusion
Finding the right retail space for your business can be a complex and challenging process. However, by understanding the key factors to consider when evaluating retail spaces, such as location, rent, and zoning laws, you can increase your chances of success. In addition, by knowing how to negotiate with landlords, you can ensure that you are getting a fair deal and a retail space that is well-suited to your needs.
When searching for a retail space, it can be helpful to engage the services of a professional property consultant. Our team at Lushhome have extensive knowledge and experience in the real estate market and can provide valuable guidance and support as you navigate the process of finding the right retail space for your business.
So, if you’re ready to take your business to the next level and find the perfect retail space, don’t hesitate to contact us today. With our expertise and support, you can find a space that will help your business thrive and succeed.