Location Location Location

A long-standing phrase used by many property experts is that the three most important factors in determining the desirability of a property are location, location, location. The broad spectrum of commercial real estate (CRE) investing encompasses many complex strategies and components to be effective, productive and financially successful. Some of these components include market timing and demand, financial capability, access to capital, the team make up, experience, knowledge of the desired market, whether to buy, lease or build new—just to mention a few. This is true for all the CRE categories, be it office, retail, industrial, multi-family and others.

One of the most important and complex considerations is the “location” within the chosen market area.

Many real estate professionals deem it to be the number one rule in real estate, yet it is often the most overlooked. You can buy or build the best facility, with a proven business model and product, but, without the appropriate location, it can often mean less than desired results, and even lead to possible bust.

Each category of CRE has its own unique set of complex location requirements, with some overlap.

In most cases, commercial real estate investment is a medium to long-term occupancy/hold, often entailing significant costs, so location can have a direct effect on current and future financial considerations.

In advance, the business owner/investor should clearly identify, outline and itemize all of the locational strategic elements needed for their intended business use. In order to determine the best location for an intended use, the business owner/investor should thoroughly investigate, study and evaluate all unique aspects of the required location characteristics, some of which are briefly stated to the right. If more input is needed, it would be beneficial to engage the services of qualified service providers most knowledgeable and experienced in such matters.

Office

Business office location criteria can be more varied. It is widely known that office locations can be proximate to governmental entities, central business districts, suburban areas and existing commercial districts.

Retail

Retail CRE usually requires the most reliance on location choice parameters. Most national retailers have very stringent location template guidelines. So much in fact, they will not locate in a city or market area until those location guidelines are met exactly. High traffic counts, high visibility from the street, proximity to other retail, demographics that fit their product(s) and supply chain are some of the key parameters.

Industrial

Industrial CRE requires a much different set of location choice parameters. Industrial requires reliance on the availability of infrastructure (streets, sewer, water, power, gas, etc.), shovel- ready land availability, required zoning and access to relevant key forms of transportation.