Elbow space is a term largely specific to retail real estate.
It refers to the space in the corner of a retail asset (e.g. neighbourhood centre or strip mall, community centre, convenience centre or even value centre or one of the regional categories).
As obvious in the diagram above, such space enjoys the least visibility and access relative to its GLA or rentable area.
On-grade parking access is relatively constrained, resulting in less convenience access than for other retail units.
Micro factors driving retail turnovers (and how elbow space falls short)
In the “art and science” that is retail real estate, the following variables specific to a unit in a retail asset influence the space’s turnovers potential – and thus the rental it commands:
Passing feet
Unless the tenant is a destination tenant (self-storage, Amazon locker, medical etc.), a large percentage of the tenant’s successful is derived from foot traffic or passing trade.
Therefore the placement of anchor tenants relative to line shops is of key importance. Anchors “bring feet”.
Elbow space, often located in the middle of a centre, may enjoy greater foot traffic.
Frontage
Frontage influences both key factors of access and visibility.
More visibility translates into more feet. Improved access results in a more convenient shopper experience.
Here traditional elbow space, unless the corner is removed, and the shop front is brought forward at a 45 degree angle to either, will enjoy less frontage.
Space configuration
Building on the points above, as the store deepens, foot traffic lessens. (This is why convenience or discount items are often located at the back of the retail store, driving feet past the aisles).
Therefore narrow space which is deeper, with less store frontage, commands lower rentals.
The higher the ratio of frontage to total GLA, the better for trading densities.
Elbow space generally does not score well here.
Signage
Whether external, or store front signage, this store marketing is helpful to attract shoppers to a tenant.
With less shop front real estate, signage requires innovative solutions.
Macro factors driving retail turnovers (and how elbow space falls short)
Parking
Where a site’s catchment area comprises shoppers using vehicles, the following are key parking variables supporting a pleasant shopping experience
- Volume of parking – expressed by a parking ratio
- Quality of parking
- Low density – with generous bay sizes
- Shade / protection from elements
- Layout
- Comfortable turning circles
- Wide lanes avoiding queues while patrons reverse
- Convenient access to stores
- Simple navigation
- Good visibility
Centre cosmetics / aesthetics
This variable is subjective. An attractive (shop frontage is glass, good landscaping), well-maintained, clean and well-designed space will entice customers and quality tenants alike.
Tenant mix
Shoppers prize convenience. Where centres are made up of complimentary tenants, enabling shoppers to perform multiple errands in one location, this creates powerful reinforcing benefits. For example, a centre that allows me to go to the supermarket, and pick up the dry cleaning, and pick up dinner, and cut new keys will always be preferable.
Centre physical comfort
A shopper experience at a comfortable temperature, protecting shoppers from wind or wet, will improve customer satisfaction. For enclosed centers this is easier to achieve than outdoor centres.
Catchment area demographics and psychographics
Demographic factors are the following, and these influence the nature of businesses that will meet with success
- Disposable income / affluence
- Age
- Cultures
- Predominant mode of transport
- Education
- Gender
- Marital status
- Family unit composition and children / grand parent ratios
- Occupations
Traffic
The more vehicles or pedestrians that go by a given space, the more likely it is to be successful. Thus sites in close proximity to public transport nodes, and convenient road access achieve greater demand. For more information on transit-orientated development, please see here.
