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Types of Space | Retail Office

Retail space runs on different rules than a standard office lease: visibility, foot traffic, co-tenancy, and often percentage rent. What to know before you search.

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Retail space runs on different rules than a standard office lease: visibility, foot traffic, co-tenancy, and often percentage rent. What to know before you search.

The perfect office space can seem impossible to find, especially for a small business. Whether you're looking for a space that gives your specialty shop more foot traffic, or a storefront that displays your logo loud and proud, retail space runs on a different set of priorities than a standard office lease.

Quick Answer

Retail space is built around customer access and visibility, not internal operations. Priorities include foot traffic, parking, storefront signage, co-tenancy with complementary businesses, and sometimes a percentage rent structure tied to sales. Location matters more in retail than almost any other space type.

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What Is Retail Space?

Retail space is built around easy customer access, so plenty of parking and real opportunities for customers to see the business, browse merchandise, and walk in are essential. Display matters, too: space that lets a business showcase a logo or storefront window helps drive the kind of visibility retail depends on. When it comes to retail, location is everything, which is why a local tenant rep who knows a specific submarket's foot traffic patterns can make a real difference in the search.

Key Priorities to Consider

Visibility and signage: Storefront visibility from the street or parking lot, along with the ability to put up clear exterior signage, is often the single biggest driver of walk-in traffic for a retail business.

Foot traffic and co-tenancy: The other businesses in a shopping center or retail corridor can drive or divert traffic to a storefront. A complementary tenant mix, a coffee shop near a bookstore, for example, can meaningfully boost visibility, while the wrong mix or an anchor tenant leaving can hurt a small retailer.

Storage and display needs: A retail space's layout needs vary by product. A shoe store needs racks and ladder access for stockroom storage, while a clothing boutique may prioritize open floor space for display. The ideal retail space fits both the product and the customer experience around it.

Percentage rent: Some retail leases, especially in malls and high-traffic centers, include a percentage rent structure: a base rent plus a percentage of gross sales above a certain threshold. It's worth understanding whether a lease includes this structure before signing.

Parking and ADA access: Adequate customer parking and ADA-compliant entrances and pathways are essential for any retail business relying on walk-in traffic.

Not What You're Looking For?

Check out our other guides on Traditional Office Space, Industrial Space, and Medical Space.

Not sure retail space is the right fit? See how TenantBase matches businesses with brokers by space type and market.

See also: Get Matched With a Tenant Rep Broker, By Market and Space Type →

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A local tenant rep can help you find retail space with the visibility and foot traffic your business needs, at no cost to you.

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Frequently Asked Questions

What makes retail space different from office space?
Retail space is built around customer access and visibility rather than internal operations. Foot traffic, storefront signage, co-tenancy with complementary businesses, and often a percentage rent structure tied to sales are all factors that don't typically apply to a standard office lease.
What is percentage rent in a retail lease?
Percentage rent is a lease structure common in retail where the tenant pays a base rent plus a percentage of gross sales above a certain threshold. It's more common in malls and high-traffic centers than in standalone storefronts.
Why does co-tenancy matter for a retail business?
The other businesses in a retail center can drive or divert foot traffic to your storefront. A complementary tenant mix can meaningfully boost visibility and sales, while the wrong mix, or a major anchor tenant leaving, can hurt a small retailer's business.
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