The easy answer is yes, of course it can.
Last week I had a very interesting experience with a client of mine. Looking for a location on the Westside, my partner and I have searched for weeks to find our client the best location that we possibly could. However, those of you in the real estate business know that once a building “goes to market” it is too late. Those perfect spaces with plenty of parking, high visibility, perfect layouts and affordable rates rarely even hit the market because before they do a deal has already been done. Which is why the only real value a real estate broker brings to the table is the information they have. With much frustration, we seemed to be just missing the off market information until finally, we got wind of an amazing space. Immediately we picked up the phone and called our client. It really was perfect; right in the sweet spot on price, phenomenal location that many retailers would die for and most importantly, it had not yet hit the market and we would be the first to see it. Sounds like a home run, right? Wrong.
Every retailer’s location affects their profitability. Depending on your demographic, budget and specific needs, the retail location can literally make or break your business. BUT – what many retailers (and their representatives) do not realize is that even the most perfect location (or seemingly perfect location) can ultimately mean the failure of the business. One of the many things that brokers do not take in to consideration is why this location is vacant in the first place. Who was there before? Why did they leave? Why couldn’t they make it at this location? Should I be concerned for my client for the same reasons? As brokers, we see this countless times; that seemingly perfect retail space on the corner of a busy street continues to turn over and over with new retailers. But, do we ever ask the question, why? What it is about that location that cannot sustain a long-term Tenant?
These were the very questions that I should have asked myself before picking up the phone to call my client on this “amazing” space. I knew who the current Tenant was and in fact, I had even been there once, so for me, that was enough to confirm my belief that this was an amazing space. But, in reality is was not enough. As soon as I dropped the name of the current Tenant, my client gave me a stern “No, thank you. Pass”. At first, I was shocked that he would pass, yet again, on what I believed to be an amazing space that was off market and he could be the first to jump on. However, in the course of our conversation, I discovered that he knew the chef of this restaurant and had researched him quite extensively. Without divulging too much information, let’s just say that this chef is one of the better ones. And the question my client posed back to me was, “If that chef couldn’t make it there, how will I?”
It is not every day that we learn something from our clients, but when we do, it reminds us that we need to constantly reassess our strategy, our thinking and our research to be the most knowledgeable people that we can be. And most importantly, we must, always, always, be concerned about our client’s success first, not the amount on our check.
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