Key Factors for Choosing “Land” for Commercial Development: by Hooman Nissani
The internet has yet to completely take over our lives, despite the fact that day-to-day living in 2020 would be virtually impossible without it. No matter how much we embrace digital technology, there will always be a need for a traditional, physical presence for businesses. People still need to work somewhere, inventory still needs to be stored somewhere and for many businesses such as retailers, consumers would feel uncomfortable if there was no physical location for them to visit.
Choosing the right location for your business whether you’re a new company, relocating or expanding your operations is as key as choosing the correct location for your home. Make the wrong choice and customers will not visit, your employees will suffer from low morale, and your logistical channels will turn into production halting bottlenecks.
Here are some key factors for choosing ‘land’ for commercial development.
How easy is the land location to access?
Transport links are key to most businesses. If you are a retailer, you will need to make sure your customers do not have to endure a long and stressful journey to reach you. If you are a distributor, then proximity to freeways and interstates is crucial. If your business is simply a base for your employees, then you are going to want to make sure they arrive for a day’s work fresh and invigorated and not tired and frazzled.
Selecting the correct location can be something of a fine balancing act, though. Purchase and rental prices will be higher in areas close to residential areas, and also where commercialization is high. There is no point selecting a location close to your customers if your profits are going to be eaten up by rental rates and business taxes.
Will you be close to your competitors?
This is another fine balancing act and depends on what your business actually does. Apparel retailers tend to cluster together, as when people head towards one retailer to purchase clothing, the chances are they will visit other retailers close by in order to compare cost and availability. The same goes for car dealerships as potential purchasers are more likely to want to browse several vehicles across multiple locations before deciding on the vehicle they want to buy.
Too much competition though is likely to harm your business, particularly if your potential competitors are already established names. If customers are already loyal to brands they are unlikely to jump ship just because a new face appears in town.
The potential for expansion
A successful business is one that never settles for what it is currently achieving, and instead is one that is forever looking at ways of expanding and developing. Google is now much more than a search engine of course, and Facebook is no longer just a site where people can share photos of their children and their pets.
You may not be considering expansion at the moment, but not doing so is simply short-term thinking. What happens if your business does become hugely successful and you quickly outgrow your premises? Relocation is a costly and time consuming exercise. It is far better for you to factor in the expansion potential of your chosen location when choosing land for commercial development, as opposed to moving to a larger location when your current location no longer suits.
For help and advice about identifying the correct real estate opportunities and options for your business, please feel free to contact Nissani Brothers Enterprises. We can be contacted by using the online contact form that is available
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