Location is Still King in Commercial Real Estate
We’ve all heard it before…location, location, location! Whether you’re launching a new startup, expanding an established company, or moving your operations, selecting the right location can have a huge impact on your business. Here we will discuss the various ways in which location impacts a business and why it should be at the top of your list when considering leasing commercial space.
Visibility is Key – Locations within close proximity to shopping districts, restaurants, or transportation hubs naturally have higher foot traffic, which translates into increase for commercial tenants. Even for businesses that don’t rely on walk-ins, such as distribution centers or tech companies, choosing a location with good accessibility can make it easier for employees as well as customers to reach you, enhancing convenience and improving client satisfaction.
Proximity to Competitors and Industry Hubs – Sometimes, being near your competitors can be a smart move. If you’re in a high-traffic, competitive area where your industry is already thriving, you can benefit from being close to similar businesses that attract the same type of clientele. For example, an IT firm positioned in a technology hub may find that their proximity to other industry players promotes easy access and collaboration opportunities. On the other hand, a poorly chosen location can isolate you from the key players and customers you want to engage with. Before signing a lease, analyze whether the area offers a strong presence of other businesses in your field, or whether being part of an industry-specific zone will improve your business’s visibility and reputation.
Cost Considerations – While premium locations in prime areas may seem like the best option, the cost of leasing commercial space in those areas can be significantly higher. Businesses need to balance the benefits of a high-traffic location with the costs of renting in that area. If your business is just starting or operates on a tight budget, it may be wise to select a location that offers good access and visibility, but at a more reasonable cost. In some cases, moving slightly away from the core of a bustling area can offer lower lease rates while still providing access to a good customer base. Choosing an area that’s on the rise or developing can also offer a strategic advantage, as rent may be lower now, but the area could appreciate in value over time.
Access to Labor – Where your business is located can also impact your ability to attract and retain talent. A location that’s difficult to reach, lacks amenities, or is far from public transportation can create challenges for employees who rely on easy commuting options. On the other hand, choosing a location in an area with good transportation links, or one that offers amenities like cafes, gyms, and affordable housing nearby, can make it easier to attract top talent. It’s important to consider the needs of your team when selecting a commercial space. If you expect employees to commute, or if remote working is not an option, choosing a location that is both convenient and desirable for employees can help ensure that your workforce remains satisfied and productive.
Long-Term Growth Potential – Location isn’t just about the immediate needs of your business; it’s also about long-term growth. When choosing where to lease commercial space, consider the future potential of the area. Does the landlord have expansion opportunities within their portfolio? Is the neighborhood undergoing redevelopment? Are new businesses moving in, or are there plans for infrastructure improvements like new highways, rail lines, or public spaces? Opting for a location with growth potential can help your business keep pace with broader economic trends and secure its long-term viability.
Choosing the right location for your commercial space is a decision that should be made with careful consideration of your business goals, target audience, budget, and long-term strategy. Ultimately, finding the right spot is about aligning your space with your business’s specific needs and creating a foundation for sustainable success. By focusing on location as a key factor, you can set your business up for growth, attract more customers, and create an environment where employees and clients alike feel confident in your brand.