In Missoula and across Western Montana, retail space has been scarce for years, with vacancy rates stubbornly low, hovering between 2% and 3%. This creates a competitive landscape for businesses seeking prime locations, giving landlords the ability to be more selective about who they lease to. The key trend we’re seeing? It’s not just about filling a space—it’s about filling it with a concept that adds real value to the shopping center or neighborhood.
If you’re a business owner looking to secure retail space, you need to go beyond offering a simple pitch. A successful approach hinges on defining how your retail concept complements both the landlord’s property and the businesses around it. Here’s how to increase your chances of securing the perfect location by understanding the landlord’s goals and proving the long-term viability of your concept.
Understand the Landlord’s Vision
Before even approaching a landlord, it’s crucial to do your homework. Every landlord has a vision for their property, and aligning your retail concept with that vision is your first step. Landlords are often looking for businesses that not only pay rent on time but also enhance the property’s appeal and drive foot traffic. For instance, they may be aiming to create a shopping destination, a lifestyle hub, or a family-friendly environment.
To define how your concept fits, consider the existing tenant mix. Does your concept bring something complementary to the table, or does it fill a gap? A landlord looking to enhance a high-end shopping experience won’t likely be interested in a discount retail store. Similarly, if a shopping center has a strong focus on health and wellness, your organic food store or yoga studio might fit perfectly, whereas something unrelated may struggle to get traction.
This is where your experienced SterlingCRE Advisor can help. We are constantly evaluating the retail landscape across communities in Montana to understand the trends and future plans of each space. We can help you identify opportunities where your concept could fill a gap or complement the surrounding businesses. This level of insight allows you to refine your pitch, showing how your business aligns with the property’s overall strategy and enhances its value.
Positioning Your Concept as a Long-Term Asset
Landlords aren’t just looking for businesses that can pay rent this year—they want tenants who will still be there five or ten years down the line. To prove you’re that tenant, you need to present your concept as a solid, long-term investment.
Work with your commercial real estate advisor to demonstrate how your business has the potential to thrive in the local market. Present relevant data on your target demographic, market demand, and sales projections. The stronger the case you make for your business’s ability to generate consistent traffic and sales, the more likely a landlord will see you as a valuable tenant. Additionally, highlight any unique elements of your business that align with trends in consumer behavior—whether it’s experiential retail, sustainability, or community engagement, these can all bolster your case.
It’s also important to have a clear growth plan. Landlords want to know that you’re thinking long-term. Whether you’re a single-location boutique or a rapidly growing chain, explain how you plan to scale or evolve within the space. Showing a roadmap of how you intend to expand your product offerings or customer base over time can provide added assurance that you won’t just be a flash in the pan.
Pitching Your Concept Effectively
Once you’ve positioned your retail concept to address the landlord’s needs and vision, your SterlingCRE Advisor will pitch your concept to the landlord or their representation. An experienced advisor will help show potential landlords how your success will benefit them and their property. Your advisor will demonstrate how your presence will enhance the shopping center’s foot traffic, drive sales for other tenants, and contribute to the overall growth of the area.
For instance, if you’re opening a new restaurant in a mixed-use development, your concept can bring in customers not only during lunch and dinner hours but also during slower times of the day, creating consistent activity. If your business can attract a loyal customer base, or if you have a strong brand following, this information can be leveraged to show the viability of your business.
Remember, landlords want tenants who are a synergistic fit for the space and can help create a positive, cohesive environment. When your business aligns with the landlord’s goals and complements the existing tenant mix, your chances of securing the space significantly improve.
Proving Your Concept’s Success Potential
Landlords need to feel confident that your retail concept will be successful in their space. While it’s important to have a great concept, it’s equally important to show that you’ve thought through the operational side. Be prepared to share a solid business plan that includes financial projections, marketing strategies, and details on how you plan to manage the business day-to-day.
If you have a proven track record, showcase it. Case studies from previous locations, testimonials, or even metrics from your online business can give landlords the reassurance they need. If you’re a new business, focus on how you’ve mitigated risk, such as securing financing, building a strong team, or forming partnerships with established suppliers.
Your SterlingCRE Advisor will help you prepare this information and can also assist in outlining how you plan to invest in the property, such as build-outs or renovations. Landlords are more likely to choose tenants who are willing to enhance the property’s value, showing your commitment and long-term vision.
In today’s tight retail market, particularly in areas like Missoula and Western Montana, the strength of your retail concept can make or break your ability to secure prime space. SterlingCRE Advisors understand the local market, have established relationships with landlords, and know how to position your retail concept to meet the needs of property owners. With the expertise of a SterlingCRE Advisor, you’ll be well-equipped to secure a space that will drive your business forward.
