Site Selection

3 Types of Locations

Planned
Isolated
Shopping
Store
Center

Unplanned
Business
District

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 Isolated Stores
Advantages Disadvantages
* No competition * Difficulty attracting
* Low rental costs customers
* Flexibility * Travel distance
* Good for * Lack of variety for
convenience customers
stores * High advertising
* Better visibility expenses
* Adaptable * No cost sharing
facilities * Restrictive zoning
* Easy parking laws

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 Isolated Stores
Advantages Disadvantages
* No competition * Difficulty attracting
* Low rental costs customers
* Flexibility * Travel distance
* Good for * Lack of variety for
convenience customers
stores * High advertising
* Better visibility expenses
* Adaptable * No cost sharing
facilities * Restrictive zoning
* Easy parking laws

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 Isolated Stores
• Large-store formats
• Convenience stores

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 Unplanned Business Districts

Secondary
Central Business Business
District District

Neighborhood String
Business District
District

10-6
 Planned Shopping Centers
Advantages Disadvantages
* Well-rounded * Limited flexibility
assortments * Higher rent
* Strong suburban * Restrictions on offerings
population * Competitive environment
* One-stop, family * Requirements for
shopping association
memberships
* Cost sharing
* Too many malls
* Transportation access*
Domination by anchor
* Pedestrian traffic stores
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 Table 10.1 A
Characteristics of Centers
Features Regional Center
Total site area 30-100+
Total sq. ft. leased 400,001-2,000,000+
Principal tenant 1, 2 or more department
stores
Number of stores 50-100
Minimum # of people in 100,000+
trading area
Driving time of trading Up to 30 minutes
area
Location Outside central city on
highway

10-8
 Table 10.1 B
Characteristics of Centers
Features Community Center
Total site area 10-30
Total sq. ft. leased 100,000-400,000
Principal tenant Branch department store
Number of stores 15-25
Minimum # of people in 20,000-100,000
trading area
Driving time of trading Up to 20 minutes
area
Location Close to residential
areas

10-9
 Table 10.1 C
Characteristics of Centers
Features Neighborhood
Center
Total site area 3-10
Total sq. ft. leased 30,000-100,000
Principal tenant Supermarket or
drugstore
Number of stores 5-15
Minimum # of people in 3,000-50,000
trading area
Driving time of trading Less than 15 minutes
area
Location Along major
thoroughfare in single
residential areas

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 Location and Site Evaluation

One-hundred The
optimum site
Percent
for a
Location particular store

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 Figure 10.7
Location/
Site
Evaluation
Checklist

10-12
 Pedestrian Traffic
 The most crucial measures of a location’s
and site’s value are the number and type of
people passing by.
 Proper pedestrian traffic count should
include
* age and gender (exclude very young children)
* count by time of day
* pedestrian interviews
* spot analysis of shopping trips

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 Vehicular Traffic
• Important for
– convenience stores
– outlets in regional shopping centers
– car washes
– suburban areas with limited pedestrian
traffic

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 Parking Considerations
 Number and quality of spots
 Distance of spots from stores
 Availability of employee parking
 Price to charge customers for parking

10-15
 How Many Parking Spaces?
• Shopping centers = 4-5 spaces per 1000
square feet of gross floor space
• Supermarkets = 10-15 spaces per 1000
square feet of gross floor space
• Furniture stores = 3-4 spaces per 1000
square feet of gross floor space

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 Terms of Occupancy
Considerations
• Ownership versus Leasing
• Type of Lease
• Operations and Maintenance Costs
• Taxes
• Zoning Restrictions
• Voluntary regulations

10-17
 Types of Leases

Straight Lease
Maintenance-
Percentage increase
Lease recoupment
lease

Graduated
Net Lease
Lease

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