Shop shopping: picking a new retail location requires much thought. See what you need to do to find the best place for your next store

Pool & Spa News, April 11, 2005 by Rin-rin Yu

Bridges learned from his first mistake of working in an industrial park. After turning the location into an administrative office for the company and moving the store across town, its success encouraged them to open a second location 40 miles away in Salisbury, Md. The affluent area Bridges selected brings enough customers in without having to market too much, he says.

"We chose to be in [a popular area] as opposed to trying to sway people into a less readily accessible area," Bridges notes.

For foot traffic, it's just as important to have high visibility from the sidewalk as it is to be seen from the road. A store with large windows, high ceilings, an attractive facade and good lighting at night will draw more customers through the door during business hours. A strip mall with good maintenance, cleanliness and nearby public transportation stops can be a plus for retailers.

Finding the ideal store location can be a headache, but it's rewarding in the end. "Every one we've done, we've stayed in," Hajjar says of his six retail locations in the Massachusetts and New Hampshire areas.

"They say the three most important things in business are location, location, location," he adds. "I think that's true."

Handling the landlord

Deciding on a store property to lease involves more than just its location and price. Sometimes a landlord can make or break a retail store.

Prospective tenants should talk with neighboring ones about the landlord, according to the U.S. 5mall Business Administration. It suggests the following tips:

* Make sure the landlord is responsive and provides service quickly.

* Find out if the landlord needs constant reminding about routine maintenance.

* Ask if the landlord is sympathetic and attentive to tenants' needs or if he only collects the rent.

* See if the landlord has any policies that may hamper marketing innovations.

The SBA also recommends putting everything in writing on the lease. It should include rent agreement, protection, repairs, alterations and maintenance, as well as issues of subleasing.

Much of a store's success comes from good negotiations with a landlord, says William Crookston, professor of entrepreneurship at the Marshall School of Business at the University of Southern California in Los Angeles.

Be sure the lease is long enough for the business to flourish, and that both parties are clear on what can be done in terms of build-outs and tenement improvements.

Signing up with a Realtor also helps prospective tenants. The Realtor knows about rents in the area and what's available. However, Crookston warns against relying solely on a Realtor, suggesting that you do much of the research on your own. "They don't always see what's available because the Realtor wants to sell you what he's got," he says. "You have to continuously ask yourself 'Is this in the best location?' and map it out."--R.Y.