Now is the time for commercial investments, but how do you find the perfect community for commercial development? How can you tell which communities have the best commercial investment potential? When talking about real estate, “location, location, location” is true for both residential and commercial properties. There are a number of factors to consider when choosing a location. Here are a few factors to consider when choosing a location in the commercial sector.
Commercial real estate opportunities come in a variety of type and locations. Whether you’re looking to invest in a multi-unit residential building, develop in the commercial office market, or redevelop employment lands, where you decide to invest will have a huge impact on your potential revenue. Do you have a space already? Is there something about it that doesn’t work? You’ll need to know what you want before you’ll know how the location will benefit your investment.
Is it accessible?
In the commercial world, accessibility plays a large role in determining a location. Whether you’re looking to house retail or office, you’ll want to ensure that they are close to highway access. If you’re looking to establish a retail investment, you’ll need to ensure that there is ample parking and that there is infrastructure in place for pedestrian traffic. If people can’t easily get to the area, they won’t make the effort. It will be hard to maintain a business when you can’t get customers or tenants.
Investments from the private sector
Have there been any recent investments from the private sector? When you start seeing big box retailers in a community, it may be a sign that the community is growing and is able to sustain such developments.
Is there room for growth?
Is there availability for multiple properties in the area? This increases your percentage of potential revenue. On the flip side, if you don’t grow as much as initially predicted, do you have the ability to lease out extra space?
Is the area zoned for your business?
If there is an area you’ve had your eye on, it doesn’t mean that it will work for your business. You need to ensure that the area is properly zoned for your business. Commercial real estate encompasses multiple categories and therefore the zoning can be very extensive. For example, if you are looking on developing an industrial property, you’ll need to find industrial space available for development that fits your zoning. The types of zoning will depend on the city. A commercial real estate agent will be able to advise.
Speaking with a seasoned adviser
It’s easy to become overwhelmed and the easiest way to avoid this is to speak with a seasoned adviser who knows the area and understands the commercial real estate market. Your broker will be able to assess the area to ensure that it fits your needs and wants.