News Home

Directories
  Int'l Realty
  US Realty

The fact is that no matter how great your products or services, no customer will buy from your establishment if it's not conveniently located. So even though you may think that the empty corner lot would be the perfect location for your business, you must do further analysis to prove your theory. As you review the pros and cons of every potential business location, keep the following considerations in mind.

• Proximity to shopping centers.

  Is the proposed location close to shopping centers for the convenience of customers? For example, it might be effective to locate a small clothing store or a gas station next to a large shopping mall. Why? Because thousands of people shop at the mall on a daily basis. People love convenience, and if they can get everything they need near the mall, it will save them a lot of time. So a good place to look for that goldmine location might be hiding in close proximity to a regional mall or other busy shopping center.

• Transportation routes to and from work.

  Are the roads around your proposed location easily accessible, as interstate highways typically are, or are they small and congested?

  These factors make a difference. As you evaluate the location, ask yourself the question, "Does the traffic flow compliment my business, or would customers have to travel on out-of-the-way and congested roads to get to me?"

  For example, a bagel shop located on the side of the road that has the morning "to work" traffic would fare much better than the same shop located on a hidden side road or one that receives a heavy amount of afternoon homebound traffic.

  Know your customers' driving routes so you can determine how and when they would drive by and to your location.

• Proximity to recreation areas.

  Recreation areas include parks, golf courses, lakes, rivers, etc. People love recreational activities and they love convenience, so you should note the locations and types of recreation available nearby that might enhance your business's location.

  If you're locating your business near a body of water, you must know where the water flows to and from.

  Having water on the property itself is usually good, but realize that your business location can be enhanced with simply a relaxing view of the water. In addition, find out if the water flows to a larger body of water that will allow for boating or other recreation.

  Is it a good fishing lake? If your customers enjoy such outdoor activities, then it's a good idea to locate your business in an area they visit.

• Is the area in an upswing or downswing?

  You can obtain this information by meeting with realtors or brokers. If the area is in an upswing, and you want to own rather than lease your business location, your appreciation in property value will be greater and will come more quickly than a property that is in a down cycle. Different types of properties do move in cycles.

  For example, at times you will notice more of a demand for retail commercial properties than office buildings or land. Financial markets have a lot to do with these cycles, as do the economics of supply and demand. When there is more of a particular store (such as grocery stores) than consumers, then the demand for grocery stores will go down, and the value of the locations with existing grocery stores will follow.

  The opposite is also true. When there are more grocery consumers than stores to accommodate them, demand for that type of property will increase. Financial markets have a similar scenario in the balancing of their portfolios. Their effects will make for easier financing for certain types of real estate depending upon their portfolio mix.

  Talking to lenders can also help you gauge what's moving.

• Traffic patterns.

  How easy is it to get to the property?

  Can you make a left turn onto the property, heading in the opposite direction? Some properties do not allow for this left turn; in that case, it would not be the preferable property.

  Road curves are another traffic pattern consideration.

  All road curves have a concave and convex side. The concave side is always the preferred side, because your line of street visibility is far greater.

  When your business is located on the convex side, people may not notice the business in time and will speed right past it.

• Existing competition.

  When selecting a business location, you must identify all existing competition and existing stores to determine whether cannibalization (the act of surrounding stores stealing customers from other surrounding stores) will occur and whether the market is deep enough (when the demand for your product or service exceeds the existing supply) to handle the additional store. If the market is not deep enough, then there are not enough customers in that market for that store's specific products.

• Which corner of the intersection is a better property?

  The near corner, prior to the light, is not the preferable corner for any business location unless it is the only corner remaining.

  If you have a choice, you should seek out the far corner - the corner past the light on the road with the higher traffic count. Traffic does not back up in front of far corner properties, which makes for easy ingress and egress, whereas at the near corner, traffic will back up in front of the site and block your access ways.

Regardless of your business, location is a key element to your success. Study the demographics of your customers, the current market needs, and the characteristics of the property itself. When the results analyses of these three factors compliment each other, you'll have a business location that will be profitable for years to come.

| IRED Home | Search IRED |


© 1995-2009 IRED.Com, Inc
All Rights Reserved