As anyone in real estate knows, step one to three is: “location, location, and location.”
But there are a number of variables that must be considered beyond the physical spot an investor will call home. Finding a spot that suits your company, or business, or homelife, is not just about selecting a nice looking building in a hip part of town. Things like taxes, a community’s population, income levels and lifestyle choices should go into the overall mix of topics to consider before signing on the bottom line.
Big picture items to consider include: Income taxes and state sales taxes. These numbers differ dramatically depending on the state you choose and the city you select within that state. Government regulations differ from town to town, the level of qualified employees also varies. Don’t overlook these data points.
Location is of course vital. Consider your location in terms of how it will impact the commute for your clients, customers and employees. Parking is also important. What’s the use in opening a great nightclub, if the location lacks parking?
The same goes for visibility. Does your business need to be visible for pedestrians, cyclist and motorists? Do you need office space, or a warehouse for your potential business?
There are no wrong questions and it’s always a good idea to reach out to experts to consider what you’ve missed. You might know a great deal about your line or work, but you don’t know what you don’t know. It’s always good to ask. Do that and you will likely receive great advice.
When one considers a new location for a commercial development or a business, consider just who will find this location valuable. If the spot is just for you, take a deep dive and decide if it’s a good fit. If it feels off, keep looking.
If the location requires customers, look at the location from the view of your future clients. Any location has to be a good fit clients, or you won’t be in business long.
Next step is to imagine yourself as an employee. Will your staff like this location? Can they easily commute to work? Will they like the environment, the workspace, and the amenities? These are important topics to discuss, because no matter how good the operation, you need effective and engaged employees to succeed.
Do not overlook an exit or future investment partner strategy? If you already have partners, consider the benefits of having partners located near each other. Close proximity enhances communication and success.
Unless you’re Jeff Bezos, then cost is going to be a factor to review. Question one: can you afford the spot in question? And if you are working on commercial development, consider what your future clients can afford. You don’t want to price out your clients before you’ve broken ground on a commercial development.
Other topics to review:
- Convenience – Is it easy to find? Is parking close by? Consider your clients. If you’re dealing with pregnant mothers and the elderly, they may have a different concept of “convenient”.
- Safety – This is an increasingly important issue for both customers and employees. Is the parking close by? Well lit? Is there security on the premises?
- Prestige – Would a downtown address add credibility? Will wealthy clients favor a business in their own neighborhood? Some places even provide virtual offices with prestigious addresses, such as Beverly Hills, Silicon Valley, or Manhattan.
- Traffic – Retailers and restaurants love it, office workers don’t.
- Facility requirements – Do you have any special needs, such as high power consumption or specialized wiring? Do you need meeting space, but only occasionally? You might consider a shared office suite (often called executive suites) in that case.
- Zoning – Many cities have very strict zoning requirements. Make sure your business is even allowed there before you sign the lease!
Miller’s Landing is well ahead on all fronts of your commercial real estate investments. The development site’s location has outstanding zoning rules that allow a range of mixed uses and varied densities.
Of course, nothing is ever as easy as it seems, especially in the commercial development space. Things like high taxes, a lack of parking spots, state regulations and traffic issues can sour any potential deal.
Think, ask, research and review, and reach out to those in the know.