Market Scan
Available property analysis, commercial real estate scan, and location comparison.
1. Market Overview
South Riding Commercial Real Estate Conditions (2026)
| Metric | Value |
|---|---|
| Average asking rent | $25-33/SF |
| Active retail listings | 18+ spaces |
| Target rent range | $25-30/SF (below $35/SF max) |
| NNN/CAM estimate | $6-10/SF additional |
| Total occupancy budget | ~$10,000-11,000/month |
Target Corridors (Ranked by Priority)
-
Route 50 / South Riding Blvd (HIGHEST)
- Proven location, competitors have waitlists here
- Highest traffic counts
- Best visibility
-
Loudoun County Parkway
- Growing retail node
- Good anchor tenant mix
-
Route 28 / Sully Road
- Secondary corridor
- Less retail concentration
-
Braddock Road / Pleasant Valley Road
- Mixed-use corridor
- Some retail opportunities
Property Type Priorities
| Priority | Type | Advantage | Build-Out Impact |
|---|---|---|---|
| 1st | Second-gen salon/spa | Plumbing in place, fastest open | $65-100/SF |
| 2nd | Second-gen medical | Similar infrastructure | $80-120/SF |
| 3rd | Second-gen retail | Lower cost than first-gen | $100-150/SF |
| 4th | First-gen vanilla box | Maximum flexibility | $150-300/SF |
2. Search Platforms
Primary Listing Sites
| Platform | URL | Notes |
|---|---|---|
| LoopNet | loopnet.com/virginia/south-riding | Largest commercial database |
| CommercialCafe | commercialcafe.com/south-riding | Good local coverage |
| PropertyShark | propertyshark.com/south-riding | Detailed property data |
| Rofo | rofo.com/VA/South-Riding | Alternative listings |
Search Parameters
Property Type: Retail / Commercial
Size: 2,500 - 4,500 SF
Lease Type: For Lease
Location: South Riding, VA 20152
Also Search Adjacent Markets
- Stone Ridge, VA 20105
- Chantilly, VA 20151
- Brambleton, VA 20148
Search Frequency
- Weekly: Check all platforms for new listings
- Bi-weekly: Follow up on prior inquiries
- Monthly: Reassess pricing trends
3. Lease Negotiation Quick Reference
Target Terms vs. Market Standard
| Term | Market Standard | Our Target | Notes |
|---|---|---|---|
| Initial term | 3-5 years | 5 years | Longer = better TI |
| Renewal options | 1-2 options | 2x 5-year | Lock in future rates |
| TI allowance | $20-40/SF | $25-35/SF | ~$87K-122K for 3,500 SF |
| Free rent | 1-3 months | 2-3 months | During build-out |
| Rent escalation | 3%/year | Cap at 3% | Avoid uncapped |
| CAM cap | None | 3-5% annual | Limit surprise increases |
| Signage | Varies | Monument + facade | Critical for visibility |
| Exclusive use | None | Beauty/salon | Protect from competition |
| Personal guarantee | Full term | Burndown 2-3 yrs | Reduce exposure over time |
Negotiation Priorities (Ranked)
- TI Allowance - Reduces out-of-pocket build-out cost
- Free Rent - Cash flow during construction
- CAM Cap - Protects against surprise increases
- Signage Rights - Critical for visibility/marketing
- Personal Guarantee Burndown - Risk reduction
Negotiation Leverage Points
- Multiple properties under consideration
- Strong financials/creditworthiness
- Longer lease term commitment
- Quick decision timeline
- Low-risk tenant profile (established business model)
4. Lease Type Comparison
Understanding NNN vs. Gross
| Lease Type | Tenant Pays | Landlord Pays | Best For |
|---|---|---|---|
| NNN (Triple Net) | Base rent + taxes + insurance + CAM | Structure only | Transparency on costs |
| Modified Gross | Base rent + CAM | Taxes, insurance | Balanced approach |
| Gross (Full Service) | Single flat rent | All expenses | Predictability |
Recommendation
NNN or Modified Gross preferred for salon suites:
- Transparent cost structure
- Easier to model true occupancy cost
- Standard for retail in Loudoun County
5. Total Occupancy Cost Calculator
Formula
Total Occupancy = Base Rent + CAM + Insurance + Taxes
Monthly Occupancy = Total Occupancy / 12
Example: 3,500 SF at $28/SF NNN
| Component | $/SF | Annual | Monthly |
|---|---|---|---|
| Base Rent | $28 | $98,000 | $8,167 |
| CAM/NNN (estimate) | $8 | $28,000 | $2,333 |
| Total Occupancy | $36 | $126,000 | $10,500 |
Cost Modeling Rules
- Always model total occupancy, not just base rent
- Request 3-year CAM history from landlord
- Add 10% contingency for CAM increases
- Include buildout loan payments in monthly cash flow
Maximum Occupancy Budget
Based on Phase 3 revenue targets ($250K-294K at stabilization):
- Maximum monthly occupancy: ~$11,000
- Target monthly occupancy: ~$10,000
- Leaves ~60% gross margin for other expenses + profit
6. Key Contacts
Regulatory & Zoning
| Purpose | Contact | Notes |
|---|---|---|
| Zoning verification | (703) 777-0246 | Call BEFORE signing LOI |
| Zoning lookup | Loudoun County GIS / LOLA Map Viewer | Online zoning check |
| Zoning Certificate | Planning & Zoning Office | ~4 weeks processing |
Professional Services
| Service | Notes |
|---|---|
| Tenant Rep Broker | FREE to tenants (landlord pays commission) |
| Commercial Attorney | Review lease before signing |
| MEP Contractor | Infrastructure assessment before LOI |
Why Use a Tenant Rep Broker
- Free to you (paid by landlord's commission split)
- Know market rents and recent comparables
- Access to off-market listings
- Negotiate on your behalf
- Experienced with lease language
7. Site Visit Checklist
When to Visit
- Day: Saturday (REQUIRED)
- Time: 10:00 AM - 2:00 PM (peak salon hours)
- Duration: 30-60 minutes
Pre-Visit Preparation
- Print property scorecard
- Confirm appointment with listing agent
- Note approach routes from all directions
- Check weather (parking lot conditions matter)
During Visit: Exterior
- Count parking spaces (actual count, not landlord estimate)
- Observe parking utilization during visit
- Test access from all approach directions
- Check signage locations - where can you put signs?
- Note anchor tenants - are they open/busy on Saturday?
- Identify competing businesses in center
- Photograph entrance, parking, signage areas
During Visit: Interior
- Measure ceiling height (minimum 9 ft clear)
- Locate electrical panel - what amperage?
- Find plumbing access - where are water/drain lines?
- Check HVAC - units, condition, zones
- Note existing layout - walls, rooms, condition
- Ask about prior tenant - what business? How long ago?
- Check for damage - water stains, structural issues
Questions to Ask Listing Agent
- What is the total occupancy cost (base + NNN)?
- What TI allowance is available?
- What was the prior tenant's business?
- Why did the prior tenant leave?
- How long has the space been vacant?
- What signage rights are included?
- What is the CAM history (last 3 years)?
- Is there flexibility on term length?
- Are there any exclusive use clauses?
- Who are the other tenants in the center?
Post-Visit
- Complete property scorecard
- Calculate total occupancy cost
- Request full CAM breakdown (if not provided)
- Compare against other properties evaluated
- Decide: Pursue / Pass / Need more info
8. Active Search Tracker
| Date | Property | Address | SF | Rent | Score | Status |
|---|---|---|---|---|---|---|
Document: Market Scan & Lease Negotiation Guide Phase: 06 Site Selection Framework Created: 2026-01-17
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