Milwaukee, WI · Member since 2013 · 384 posts · 109 votes
I am a residential landlord beginning my learning about commercial properties.
For a property with a storefront, how much of a negative is it if parking is in the back (so not visible when driving by)?
What type of tenants are OK with this, what type would you be missing out on?
In this case the parking lot in back is actually a public lot for the benefit of businesses in a quaint downtown of a suburb. The area has some foot traffic from people visiting a handful of restaurants and bars and small retailers in the area.
I am comparing a property like this with ones that are a mile or so away that have small parking lots in front. These properties are typically newer, so they were built in the automobile age. Or an old property was torn down and there was room to surround the new one with a parking lot.
Check the zoning of the property, they may be required to have parking in the back. We have a couple of commercial & mixed use zones here which require parking to be "around back".
Generally it's not ideal and I again generally would view it in less than a positive light. That said there could be other factor positive factors to offset the negatives, like if the locals understand and accept the rear parking as just part of shopping here. Also, access, visibility, signage for the center and parking will be especially important to help. Also, in comparing this retail center to the others, if the demos are much stronger for the rear parking location and most retailers prefer this market to others, and there were limited other options, this could/would help offset the negative impact of the rear parking. For the most part, you would be looking at local retailers to occupy the rear parking center. Most national chains don't like it. That said, if there are no other options in the market and they really want/need to be there, then they will figure out a way to make it work. Unfortunately without knowing your market, it's difficult to give more definitive answers. Hope that helps.
I've concluded that I am sticking to properties where there is a visible parking lot. I recognize now that parking is so important that a property with prominent parking significantly broadens the pool of potential tenants.