If you are a business owner and you are currently seeking commercial real estate, there are a lot of factors that you may want to consider prior to purchase. There are many real estate professionals that have access to tons of commercial real estate listings. Many of them can advise you on deals in a specific area, buildings that have been on the market for a while, or properties that offer owner financing. If your business has grown to a level that now requires the purchasing of a commercial building, you may want to consider these factors.
Easy Access for Customers
If your company has a large customer base, it is important to move to a location that is easily assessable for your clients. Some customers may travel outside of their local area for a product or service that they like; however, the likelihood that they will continue to do so is a low. Most clients are just not willing to consistently travel outside of their local area regardless of how good the services or products may be. In order to remain successful, you must retain your current customers. If you are unable to locate commercial real estate that is close to the majority of your customers, you may have to reconsider purchasing at this time.
Increase/Decrease in Sales Revenue
Location can make or break a business. Having a business with great visibility can increase your sales revenue drastically. On the other hand, purchasing a commercial building that is not visible or not easily accessible, can decrease sales revenue. You also want to seek out a location that is safe for your customers because if your customers do not feel safe coming to your office or building, it is very unlikely that they will continue to visit you. Loeb Properties, Inc. says, “Avoid purchasing commercial real estate in areas that are not thriving and there is an influx of crime. Often times purchasing commercial real estate in thriving areas can be expensive, but with persistence and the help of a real estate professional, you may be able to land a deal.”
High Traffic Offers Tons of Visibility
Having a commercial building that is visible to hundreds of passing motorists daily is an ideal location for any business. High traffic areas make it a lot easier for a business to market. Sometimes putting out signs in the front of the building or passing out flyers as customers walk by, may be all that is needed for the business to operate successfully. This also allows you to interact with other business owners and learn valuable information from them as well. They may also turn into one of your customers.
Purchase Close to Your Target Audience
If you do not already have customers and you are hoping to acquire customers who frequent or reside in a specific geographic location, then you may want to consider purchasing commercial real estate in that area. Having commercial real estate near your targeted audience makes it easier to market and establish contact with them. If you are providing a quality product or service and your business is local, a satisfied customer is likely to share his or her experience with other locals.
A combination of all these factors should be taken into consideration prior to purchasing any commercial real estate. Location matters and as stated previously, it can make or break any business. If you don’t have any customers, it is highly recommended that you rent a commercial property first as your business grows. Even with a very strong marketing platform, a new business takes time to become successful and well-known.
Resources: Pros and cons of Investing in Commercial Real Estate
