Which location is likely to have a modest occupancy cost?

Freestanding sites typically have a modest occupancy cost compared to other locations like urban business districts, high-end shopping malls, and luxury retail precincts. This is primarily because freestanding sites are often located outside of high-traffic retail areas, where rental prices tend to be lower due to less demand and competition. These venues can provide flexibility in terms of leasing options and may be situated in less densely populated areas where the costs associated with occupying the space are significantly reduced.

In contrast, urban business districts are characterized by high rental rates due to their location and the foot traffic generated from surrounding businesses. High-end shopping malls often feature premium locations with higher occupancy costs, reflecting the desirable status of the retail space. Similarly, luxury retail precincts command high occupancy costs due to exclusivity and the ability to attract affluent consumers, resulting in elevated demand for prime real estate. Therefore, freestanding sites represent a more cost-effective choice for retailers seeking to minimize occupancy costs while still maintaining a presence in the market.