There is a lot of confusion when we talk about retail and business spaces. Both seem to be talking about a specific space for which one can conduct business activities. However, the clear distinction is in the amount of foot traffic needed for a particular space to be productive.

Retail Space is usually characterized as the spaces where a lot of foot traffic is required. These will include storefronts, shops that are directly adjacent to major roads, street-level spaces and areas where frontage boards can be easily displayed.

A Business space, on the other hand, is an area that business activity can be conducted. It is usually bigger in size, allowing enough room to more employees, has spaces where teams can conduct meetings or huddles, and even a break room where employees can rest or eat their lunch.

Retail Space can be seen in almost all areas in Phnom Penh, Siem Reap and Sihanoukville. They share the same characteristics, regardless of the size or the type of retail being sold.

• A retail store is usually adjacent or located along the road to attract maximum foot traffic. The more visible a retail store is, the higher the chance that business will thrive.

• There is a space where they can put up a frontage banner or marquee to tell people about the goods they are offering or the discounts that they are willing to give.

• There is enough parking space in front of the store for customers who will visit and look at the goods that they are selling.

• The street where the store is located is usually a busy street, easily seen and passed by people commuting to and from work.

• Retail space uses glass doors and windows, where their goods are prominently displayed. This allows customers to see the items they are selling even before they go inside the store

This kind of commercial real estate can be seen everywhere. They vary depending on the type of goods they are offering and the size of the space that they occupy. Few examples of retail spaces are:

• Local Retail Stores - this refers to the small stores found within the vicinity of your houses.

  • They sell a variety of household items in smaller quantities than what you can usually buy in supermarkets.

  • The price for their items is usually bumped by 10%-20% because they sell in smaller quantities.

• Supermarkets - like local retail stores, supermarkets sell a variety of household items but in larger quantities.

  • Their price is lower because you buy in bulk. For example, you can buy 1 egg in local retails stores. In supermarkets, you have to buy one tray.

  • Like most retail stores, they are located on major roads where a lot of vehicles and commuters pass by.

• Clothing Stores - this type of space is considered a retail space because they sell items by small quantities.

  • They usually have glass frontages to allow customers to see the items they have on display.

• Pharmacies - this store sells medicines and other items related to your health and well-being.

  • They can sell small or large quantities depending on the stocks that they have available.

  • These types of businesses are usually located in corner lots of busy streets to allow maximum visibility.

• Convenience Stores - this type of store is almost like a local retail store but is called a convenience store because it carries varied items.

  • Items would include food, medicine, household items like soap and shampoo, and many other items that local retail stores don’t have.

  • They are also mostly air-conditioned and operating hours are longer.

  • This is convenient for people who forgot to buy some items in the supermarkets, and/or running late and need to buy something after the regular stores are closed.

Compared to retail space, business spaces don’t need to be prominently seen by pedestrians and commuters. Spaces like this usually require a modicum of privacy for the owner conduct their business.

• Business Spaces can be located inside commercial buildings or mixed-use residential properties.

• They do not require a lot of foot traffic even though they are used for profit generating purposes.

• Spaces like this are still considered commercial real estate and are usually located in city centers.

• They do not require glass frontages or big marquees advertising their products.

• Business spaces are generally bigger than retail spaces to conduct their activities.

• Most of these spaces are used for “service-oriented” business wherein no item is being sold but services are offered.

• They are significantly larger than the local retail stores.

• They need to have enough room for customers who need to take their time to complete their business

Business spaces don’t need to be near busy streets because regardless of where they are located, clients visit the area for their specific needs. Some examples of business spaces are listed below:

• Dental or Doctor’s or Veterinary Clinic - This type of business doesn’t need prominent space. Clients will visit these businesses on a need basis regardless of where they are located.

• Spa, Gym and Wellness Centers - This business is usually located inside residential buildings, condominiums or commercial structures.

• Coffee Shops - they are a type of business space because even though they sell items, customers visit their store and stay there for some time.

• Bars and Restaurants - Sometimes they are located in areas where retail spaces are also found, but they have larger spaces and generally have additional spaces for restrooms and kitchen.

Retail and Business spaces generally share the same real estate sphere. The distinction is mostly on the type of goods they are offering, and the purpose with which space is being used. For most businesses, location is the key. It is important to find a place that would suit your specific needs.