Retail Teams: Permit Delays Can Cost More than You Think

Imagine this scenario: a retailer signs a lease in a high-foot-traffic neighborhood, aiming for a Q3 opening to catch back-to-school shoppers. But delays start stacking up quickly.

Permit submittals are rejected for missing a specific plan set, and now the architect is scrambling. The next submittal receives many comments, construction dates get delay, and contractors lose their crews. Just like that, the anticipated Q3 opening slips through the cracks.

Many project teams have come to accept this scenario as status quo: permitting will always involve delays, headaches, and missed openings. But that’s not the case, and the cost of these permitting delays can ripple through your business with serious consequences.

A major impact on retail growth targets

After years of disruption, brick-and-mortar retail is finally rebounding. We’ve heard from many teams this year that they are scaling physical footprints and entering new markets. For most companies, hitting expansion milestones is critical to executives, the board and investors. Why? A business that cannot expand quickly, efficiently and predictably, is fundamentally less valuable.

Permitting execution may not always be top of mind for senior business leaders, but it’s the single biggest risk to an expansion plan. It has the potential to add weeks or months to projects, impacting hiring plans, project costs and revenue forecasts.

You lose out on location-based opportunites

First-mover advantage is real (and permitting can cost you)

Retail is highly competitive, especially in urban neighborhoods and emerging markets where location can make or break success. Being the first to open in a prime spot can generate early brand visibility, strong press, foot traffic, and loyalty. But permitting delays can rob you of that advantage.

Some teams avoid building in hard jurisdictions

Certain cities are especially tough to permit in; they require special entitlements, involve complex plan reviews, or have unpredictable inspection cycles.

In contrast, smooth jurisdictions (often suburban or newer-build markets) allow teams to forecast and execute more reliably. But when teams let permitting complexity dictate their market map, they can leave high-value locations off the table.

Delayed openings mean unrealized revenue

When a store build-out is delayed, capital becomes tied up in an idle asset. The leases have started, construction is midstream, but the doors aren’t open. The longer the delay, the greater the missed sales and margin.

This loss compounds during peak periods. Even a two-week delay can mean missing key windows like back-to-school, Black Friday, or Mother’s Day. For brands with seasonal spikes or regional strategies, you can’t always recover that revenue.

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Without predictable permitting timelines, teams can’t plan store openings around critical revenue periods.

The price of holding costs and change orders

Change orders add visible costs

Permitting delays often trigger change orders, especially when designs must be modified mid-review or when materials go out of stock. Whether it's a plan revision fee, a rush order for new materials, or rework due to expired documents or lapsed inspections, one change could cost thousands.

Holding costs quietly stack up

Even if you aren’t ready to start operating on the day your lease commences, you may still incur operating expenses like rent, insurance, utilities, security, property taxes, and retainers for consultants or project managers. These expenses add up even if stores haven’t opened, and they rarely get recouped.

Permit delays don’t have to be the status quo

It might be easy to assume that permitting delays are part of the process. Every jurisdiction has its own rules, requirements, and timelines.

But permitting isn’t just about completing paperwork, it can be treated as a strategic function. Just like any complex process, the more visibility and control you can create, the better your outcomes will be. Permitting is a skills-based game, and your team can turn it into a competitive advantage.