The old saying “Location, Location, Location” could not be more true in commercial real estate. A good location is critical for all brick and mortar retailers, restaurants and service businesses.
Finding a location for your business is more than just choosing a building. There are many factors to consider when choosing your business’s location and you have to look at the big picture – is it going to be good for you and your customers?
Here are a few topics and questions that should be addressed when picking a location-
- Demographics. Who are your customers and do community members match your customer profile? Will the community support your business?
- Co-tenancy. Do the neighboring businesses align with yours or are they competition? Do you have other successful tenants around you?
- Traffic. The more traffic you can garner, the better. Are you located next to a grocery store that will bring a lot of foot traffic? Is your location on a highly traveled road or thoroughfare? Traffic, regardless of what kind, will bring new customers.
- Cost. An obvious consideration. While you shouldn’t go cheap on real estate, your rent should be affordable and align with your projected income.
- Visibility. Are you close to the road where people will see your sign driving by? Do you have good frontage or are you hidden in the corner of a shopping center? Having good visibility will attract new customers and make it easy on your existing customers.
- Safety. Is the area well lit? Is parking close by? Is there on-site security? Customers will not return if they feel their safety is at risk.
- Convenience and Accessibility. Is there ample amounts of parking for your customers? Is it easy to find and get in and out of?
- History. Does the location have a history of success or it a revolving door when it comes to tenants? You want to know that others have succeeded in the location and that you can too.