We’ve all heard the phrase before– location, location, location. It gets repeated so often for good reason. Location truly is one of the most important factors in real estate, and this is doubly true in commercial real estate development. Building new commercial properties and spaces is an investment, and the place you choose can make or break the success of that investment.
Whether you’re creating an office building, retail spaces, restaurants, medical clinics, industrial facilities, or any other number of commercial locations, few choices will carry as much weight as your choice of location. Here are a few guidelines to keep in mind when making your decision that will help you understand the importance of location, and help you to find a good one!
Accessibility
The accessibility of the location you choose is one of the most impactful factors to take into account. If you want people– customers, employees, and other visitors included– to be willing to put in the time and effort to come to your new commercial space, you have to make it as easy for them as possible. This can include choosing locations that are close to major transportation hubs, like highways or train stations, and it can also include selecting areas without major barriers to entry, like toll roads.
Nearby Services
Accessibility goes beyond just making sure that people can get to you, however. You also have to make sure that you’ll have access to the things necessary in order to run the commercial operation in question! External services and suppliers are almost always necessary for any kind of business, and choosing a location that gives you easy access to these things will create a distinct advantage. A restaurant or other food service business, for example, would benefit from being placed near a produce supplier, while a manufacturing plant might be best placed near the local hub of a major shipping company. The different service needs of different commercial spaces will vary, but making a conscious effort to find a spot that’s conveniently located near necessary services is something that you’re sure to thank yourself for later!
Labor Force
No commercial business can exist, let alone thrive, without the workers and employees who provide their labor, making a nearby labor force an absolute necessity when choosing a location for commercial real estate development. Whatever type of business will be operating out of your new space, you’ll need people to work there, and so you’ll want to look for a spot that has a large population of people living nearby who would be interested! If you’re trying to set up a hospital or clinic, for example, a great place to look would be near a college or university that provides nursing and medical programs. If you’re building commercial spaces to house a lot of office jobs, you might have a lot of success choosing a location near a suburb where there will likely be a large skilled workforce living. Struggling to find employees can be the kiss of death for any company, but the right choice of location can change that!
Zoning and Municipal Restrictions
When you’re working on commercial real estate development, you always have to take a certain amount of red tape into account, and the zoning laws and municipal regulations and restrictions of the area where you’re hoping to set up shop will be a crucial factor to consider. Certain areas, for example, won’t be suitable for a manufacturing plant, as local building codes either won’t allow a structure of the necessary size to be built, or green laws might curtail the emissions and other waste that a plant would create. Searching for the right location means finding a spot that complies with all of the restrictions and regulations for whatever area you choose.
These are just some of the major factors that have to be taken into account when choosing a location for your commercial real estate development project. It can be a lot to juggle when you’re in the middle of such a complicated process, but luckily, DESCCO Design and Construction can help you! On our commercial projects, we help our clients with every single step from start to finish, including assisting in the scouting and evaluation of sites and locations. If you’re interested in learning more about how we can help you with this, make sure to contact us today!