When it comes to commercial real estate, there has been a traditional belief that location is the most important factor. Quite simply, this spawned the phrase “location, location, location.” This repetition emphasizes that, if a new business owner is looking at various factors and trying to decide which commercial property is the right one to purchase, all they should really be thinking about is the location. It’s more important than any other factor and could define the success or failure of the business.
But is that still true today? It may depend on the type of business you’ve decided to run.
When location still matters
Location is very important if you have a business that requires foot traffic. For instance, bars, clubs and restaurants often get patrons who just happen to be walking by. A group of college students may go out in the local bar district, for instance, and simply walk from one establishment to the next. Being in the right location is critical because those patrons will never see the business if it’s even a mile away.
However, the Internet has changed the way that businesses get exposure. Most people – 78%, in one study – will now search for the type of business they want to find on their phone and then let the GPS direct them. This means that the location isn’t nearly as important as having a web presence that will attract more potential patrons.
Additionally, many businesses operate online. One hundred years ago, a bookseller needed to have a prime location so that people would come in and make a purchase. Today, they can ship books all over the world, and most of the buyers never come to the store at all.
Finding the right property
As you can see, you may have some flexibility regarding where your property is located, depending on your business. Just make sure you know exactly what legal steps to take while going through the purchase process and setting your business up for future success.
