Should you pay extra for a corner lot? This guide breaks down visibility premiums, frontage, traffic flow and the real F&B fit-out requirements that impact rent, yield and exit value.
Corner lots almost always ask more than intermediate shop offices—but how much more should you pay? For investors and F&B operators, the premium only makes sense if visibility, access and fit-out capability translate into measurably higher rent and lower downtime. This guide explains where the extra value comes from and what to check before you commit.
1) Why Corner Lots Command a Premium
- Two Frontages = Double Sightlines: Corners capture both directions of traffic and can host more doorway/signage opportunities.
- Turning & Dwell Effect: Cars slow at junctions, increasing glance time; pedestrians tend to gather at corners with wider pavements.
- Natural F&B Layout: Corners allow more glazing, corner entries and spill-in visibility that helps conversion.
Rule-of-Thumb Visibility Uplift
| Metric | Corner Lot | Intermediate Lot |
|---|---|---|
| Frontage length (combined) | Typically 1.6×–2.0× of a single-face lot | Single face only |
| Pedestrian glance/visibility | High (two approach angles + turning traffic) | Moderate (one approach angle) |
| Typical rent premium* | ~10%–25% depending on corner quality & micro-location | Baseline |
| Leasing velocity | Usually faster if fit-out ready for F&B | Steady, depends on row consistency |
*Ranges vary by township, traffic pattern, parking and competition. Always benchmark against recent concluded rentals.
2) When an Intermediate Lot Can Outperform
- Direct Walkway Flow: If the covered walkway diverts commuters past your door (e.g., from MRT/LRT exit or mall link), an intermediate with strong footstream can beat a corner.
- Better Parking Turnover: Frequent short-stay bays directly in front can offset visibility gaps.
- Row Consistency: A tidy, fully opened row (no shutters down) increases dwell and perceived safety.
3) F&B Fit-Out: What Really Matters
F&B tenants pay for workable infrastructure, not just visibility. Confirm these before purchase or lease:
- Exhaust/Venting Route: A clear, code-compliant duct path to roof discharge (often >3m above parapet) without cutting through neighbours.
- Grease Trap: Adequate capacity and accessible maintenance point; check piping fall and shared/individual arrangements.
- Power & Gas: 3-phase supply (commonly 60–100A for QSR/cafés) and LPG manifold or piped gas where applicable.
- Water & Drainage: Sufficient incoming pressure, floor traps in wet areas, and pest-resistant drainage covers.
- Odour & Acoustic Control: Space for scrubbers/silencers if near residences or offices.
- Loading/Refuse: Rear lane access for deliveries; grease waste and refuse storage that meets council rules.
- Approvals: Local authority permissions (layout, signage, exhaust), BOMBA requirements and M&E certifications.
Fit-Out Readiness Comparison
| Item | Corner Lot | Intermediate Lot |
|---|---|---|
| Exhaust routing options | More flexible (side/rear/roof) | Often only rear/roof; may need longer duct |
| Outdoor seating potential | Higher (corner apron/sidewalk width permitting) | Limited to front apron |
| Signage opportunities | Two elevations + corner blade signs (subject to by-laws) | Single elevation |
| Neighbour disturbance risk | Lower (one immediate neighbour) | Higher (two neighbours share party walls) |
4) Underwriting the Premium (Step-by-Step)
- Traffic Study: Count pedestrians and cars during two peaks (AM/PM). Note turning movements and queueing at the junction.
- Frontage & Access Audit: Measure usable storefront width, doorway count and curb cuts; check if trees/columns block sightlines.
- Comparable Rents: Gather recent concluded deals for both corner and intermediate units in the same row or competing rows.
- Net Yield Focus: Model net rent after outgoings (maintenance, insurance, quit rent/assessment, management if any) and a realistic vacancy downtime.
- Fit-Out CapEx: Price exhaust, grease trap upgrades, power-up, water points and reinstatement obligations. Add to your cash-on-cash model.
5) Leasing Strategy & Deal Terms
- Corner Lots: Monetise visibility—ask for higher base rent with stepped escalations. Limit free rent; offer limited fit-out period instead.
- Intermediate Lots: Compete with strong visibility clauses (fascia/blade signs), wayfinding and practical operating hours to support the row.
- F&B Covenants: Ensure venting rights, grease trap access, outdoor seating rights (where allowed) and clear reinstatement terms.
6) Common Red Flags
- Party-wall constraints that block exhaust ducting or require neighbour consent.
- High-voltage kiosks, trees or street furniture obscuring the shopfront.
- Chronic illegal parking or double lanes that hide the unit from view.
- Inconsistent trading hours along the row (many shutters down).
Frequently Asked Questions
Is a corner lot always worth the premium?
No. If the pedestrian stream or covered walkway bypasses your corner, a prime intermediate along the main footflow can outperform.
How much extra rent can a corner achieve?
Market-dependent. A practical underwriting range is ~10%–25% above comparable intermediate units if fit-out and visibility are superior.
What’s the biggest hidden cost for F&B?
Exhaust routing and grease management. If ducting must snake through long distances or shared shafts, costs and approvals rise quickly.
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