Before leasing a retail space, research helps you understand whether the location supports your business and your customers.

This includes evaluating who shops nearby, when they are active, and whether their behavior aligns with your offering. A beautiful space in the wrong area can struggle, even with strong branding.

Spending time observing the area helps replace assumptions with insight.

Customer fit comes from alignment between your audience and the surrounding businesses.

Ask whether the people who already visit the area are the same people who buy from you. If your current customers do not naturally spend time nearby, attracting them may require significant marketing effort.

A strong retail location feels familiar to your target customer.

Foot traffic indicates opportunity, but context matters.

High foot traffic is only valuable if people are browsing, shopping, or spending time in the area. Observing behavior at different times of day helps reveal whether traffic converts into potential customers.

Foot traffic quality is often more important than raw volume.

Visit the location multiple times across different days and time periods.

Pay attention to:

• Morning, lunchtime, and evening activity
• Weekday versus weekend traffic
• Directional flow and speed of movement
  

This observation helps you understand how your business may perform throughout the week.

The true cost of a retail lease includes more than monthly rent.

Additional costs may include:

• Buildout and permitting expenses
• Signage restrictions and compliance
• Security deposits and fees
• Ongoing maintenance or common area charges
  

Comparing total cost against value helps prevent budget surprises.

Value comes from what the space enables your business to do.

A lower rent space with poor visibility or restrictions may cost more in marketing and lost revenue. A higher rent space with strong exposure and flexibility may generate stronger returns.

Evaluating value requires looking beyond the price-tag.

Red flags often appear before a lease is signed.

Examples include:

• Rent that seems unusually low without clear explanation
• Limited visibility or access
• Excessive restrictions in the lease
• Lack of transparency around costs
  

Pausing when red flags appear can save significant time and money.

Rushing into a lease can lock your business into long-term constraints.

Once signed, leases are difficult and expensive to exit. Taking time to review details, compare options, and ask questions protects your business from avoidable mistakes.

Careful decision-making early creates flexibility later.

Smarter leasing decisions come from preparation and patience.

When you understand your customer, observe the location, evaluate true costs, and recognize warning signs, leasing becomes a strategic choice instead of a gamble.