Choosing the right location for your commercial property is one of the biggest decisions you’ll make as a business owner. Whether you’re opening a new shop, expanding your operations or relocating, your property’s location can make or break your success. At Segal Commercial, we understand how complicated this decision is and we’re here to help you through the process.
The location you choose impacts everything from your customer base to your growth potential and even your operating costs. There are many factors to consider such as market demand, accessibility, safety and long-term development. Let’s get into the key things to think about when selecting the right spot for your business.
Location Is Everything in Commercial Real Estate
In commercial real estate, location is a big deal. A good location can bring in more customers, better access to your target market, and room to grow. But finding that perfect spot isn’t always a breeze. There are so many things to weigh in, such as market demand, accessibility, safety, and even potential for future growth.
We’ve worked with countless clients to find the right commercial properties, and we can help you with that, too. But before you start looking at properties, it’s important to know what makes a location ideal for your business.
Understanding the Market and Demographics Around Your Commercial Property
First off you’ll want to look at the market and the people in the area. Who lives and works around your potential property? What are their needs and spending habits? This is especially important if you’re catering to a specific group of people.
For example:
- If you’re opening a boutique that targets young professionals, you’ll want to choose a location with a high concentration of that demographic.
- If your business caters to families, you’ll want to be in an area with lots of family-friendly amenities.
Looking at the local demographics helps you understand if there’s enough demand for your business. Also consider if the area is growing. You don’t just want to know if the location is good now, but if it will be viable in the future too.
Why Accessibility and Traffic Matter for Commercial Real Estate
Accessibility is a major factor when choosing a location for your commercial property. If people can’t get to your business, they won’t. It’s as simple as that. Think about how your customers will get to your location:
- Is the property near main roads, highways or public transport?
- Is there enough parking for customers and staff?
- Is the property easy to find and get to?
The easier it is for people to visit your business the more likely they are to do so.
Traffic is another factor. Whether you’re in retail or an office building, you’ll want to be in a location with good traffic. High foot traffic can mean more potential customers for retail, while for offices or other spaces, high car traffic might be a big plus. Sure, more prime locations might cost more but the visibility and traffic they bring could make that extra cost worth it.
How the Local Economy and Business Climate Affect Commercial Real Estate
The local economy plays a big part in choosing the right location for your business. You’ll want to pick a place where businesses are thriving, not struggling. Look for areas that are economically stable and growing because that’s where you’ll see success in the future.
In addition to the economy, consider the local business environment. Are there incentives for businesses that set up in the area? Are new businesses moving in? These kinds of things can give your business the boost it needs to thrive and grow.
What You Need to Know About Zoning and Regulations in Commercial Real Estate
Before you get too attached to a property, it’s important to check zoning and land use regulations. Zoning laws determine how a property can be used and these laws can vary from one location to another. For example, a property zoned for retail might not work for an industrial business.
Make sure you understand the zoning laws of your potential location to avoid surprises later on. If you’re planning to make changes to the space like renovations or additions, you’ll need to know if that’s allowed under the zoning laws.
At Segal Commercial we can help you make sense of zoning and land use regulations so the property you choose is right for your business needs.
How to Assess Competition and Industry Presence for Your Commercial Property
When choosing a location, you also need to consider the level of competition in the area. Being near other businesses in your industry can be a great way to get customers. If you’re in retail, for example, being near a shopping district can bring in more foot traffic. But too much competition can make it harder to stand out.
Consider these questions when evaluating competition:
- What other businesses are already in the area?
- Are they similar to your business or do they complement what you offer?
- How can your business stand out in a competitive market?
Also think about the presence of your industry in the area. Certain neighborhoods or commercial districts are known for certain types of businesses. For example, tech startups might flock to a tech hub, while retail stores could thrive near other popular shopping destinations.
Why Safety and Crime Rates Matter When Choosing Commercial Property
Safety is often an overlooked factor when choosing a commercial property but it’s important. If your property is in an area with a high crime rate, it can affect both your employees’ and customers’ sense of security. Plus it may be harder to attract and retain talent.
Before you commit to a location, look up the crime rates in the area. A neighborhood that’s considered unsafe can result in higher insurance costs or additional security measures. You want your customers and employees to feel safe and comfortable at your business location.
Looking at Future Growth and Development for Your Commercial Property
It’s also important to think about the future. Will your location still be a good spot in the next few years or will it become less desirable? Look into any planned development in the area. Are there major infrastructure projects coming up that will improve access? Is the neighbourhood growing or declining?
If an area is expected to grow, your commercial property may become more valuable down the track. But if the area is declining, it may be time to look elsewhere.
How Location Affects the Cost and Value of Commercial Real Estate
The location of your commercial property is directly linked to its cost. Prime spots in popular areas usually come with a big price tag. But that doesn’t always mean it’s the right choice for your business.
When evaluating costs think about:
- A high-priced location in a busy area may give you more visibility and foot traffic but can you afford it?
- A more affordable location may save you money, but will it bring in enough customers to make up for it? You need to balance the cost of the location with the value it brings to your business.
A more expensive location may offer more opportunities but you need to make sure it fits within your budget and gives you a good return on investment.
Let Us Help You Find the Right Location for Your Commercial Property
Choosing the right location is a big decision, but it doesn’t have to be daunting. When you factor in market demographics, accessibility, safety, and future growth, you can find a location that’s the right fit for your business.
At Segal Commercial, we’re here to help every step of the way. If you need an expert witness for real estate litigation or assistance with commercial real estate brokerage, property management, or consulting, we’ve got you covered.
Contact Segal Commercial today for all your commercial real estate needs. We can help you make the right decision for your business’s future!
