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Everything You Should Know About Retail Space Industry


Perhaps you at present rent a shop or need to bring diversity to your investment portfolio; either way retail space in Noida is one of the biggest and most diverse sectors of commercial real estate market and definitely well worth to have a look at.
First and foremost, it is important to understand ‘what actually is retail space industry?’. Put simply, the properties that are used exclusively to sell and market consumer goods and even consumer services are known as the retail properties. The range is vast for retail spaces – shopping centers, pop-up shops, individual stores, big brand showrooms, super markets, cafes, pharmacies, fashion stores, dry-cleaners, florists, etc. all come under retail real estate.
Key benefits of investing in Retail spaces
1)      Significant returns – People are often pulled in towards investing in retail owing to the high yields that it offers. Returns or yields is a percentage figure, calculated by taking the yearly rental income of a property and dividing it by the total amount that has been invested in that property. Investment in retail spaces typically earn its investors yields of 6-7%, which is great for investors like retirees, looking for an income-stream based investment over capital gains growth, which means increase in the property value that obviously takes time.
2)      Long leases – In contrast to residential leases, leases in retail real estate industry are usually for longer period of time, may be 5 years and more. Long term of leases are beneficial for both tenants and the landlords; tenant will get sufficient time to establish his business and landlord will get security and regular income. Apart from regular incomes, landlords are also benefitted with annual rent increases, which are as per the CPI or the consumer price index.
3)      Low to nil maintenance – For most retail leases done with good brands and reputed businesses, these are net leases, which means it is the tenant who will bear most of the costs like – utility bills, maintenance costs, insurances and even in some cases the real estate taxes as well. For that matter, most industry Gurus advice business owners to buy their own retail spaces, as owning a property has a lot many benefits, like – inclusion of an asset, tax benefits, etc.
Reasons for caution and solution for retail property investment
Since, we have already discussed the major benefits of retail space investment, it is important that we should cover the risks that revolves around the same and along with the risks, what solutions can save you from the pitfalls –
1)      Retail industry is tough and sensitive market - The retail business is exceptionally sensitive towards the economy, for a failing economy it is the retail sector that suffers the most leading to loss of businesses. In such situations, property owners may face long vacancy periods. Hence, it is important that you invest with a good property that remain occupied throughout the years. However, at times when economy downturns, it is good to play safe and offer incentives like – reduced rents or renovations to attract and retain tenants.
2)      Retail is an expensive investment – The major aspect that add to the cost of the property is the Location. Investing in retail spaces that are in the heart of the city is both needed and expensive. If you want to earn high yields and want to keep yourself protected from long vacancy periods that you must invest in property that is at the prime location and anything that is available at prime location will come at prime price.
Who puts resources in retail property?
As mentioned in the above paragraph, the range of retail properties is vast and similarly it attracts a diverse range of investors, which typically include – private buyers, foreign investors, big business houses and property trusts
Now that you have read all about retail space industry, your next step should be to find such a property. Like we made it easy for you to know about the benefits and pitfalls you should be aware of, we are making it easy for you to find a property as well- Just invest with Anthurium, sector-73, Noida and you will have your resources put in a successful and rewarding retail space. Anthurium offers its investors with various types and sizes of retail spaces under one roof.
If the above information interests you and you have any plans of investing in retail spaces in Noida, you must visit the project Anthurium personally or explore the website at https://www.anthurium.in/

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