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When it comes to choosing a location for your commercial real estate investment, there are several key factors to consider. Here are five of the most important ones:
Understanding the demographics of the area can provide insight into the potential market for your property. Consider the population size, age, income level, and other characteristics of the local community to determine whether it aligns with your target market. For example, if you are planning to open a high-end retail store, you may want to look for a location with a higher median income. On the other hand, if you are planning to open a discount store, you may want to look for a location with a lower median income.
Is the property easily accessible by car, public transportation, or other means of transportation? Consider whether the location is convenient for potential customers, employees, and other stakeholders. If the property is in a busy downtown area with good public transportation options, it may be more attractive to potential customers. On the other hand, if the property is in a remote area with limited transportation options, it may be less convenient for customers and employees, which could impact the success of your business.
Zoning and Regulations
It’s important to research the zoning laws and regulations that apply to the property, as these can impact the types of businesses that can operate there and any renovations or expansions that may be allowed. For example, if the property is zoned for residential use, it may not be possible to open a commercial business there. It’s also important to consider any building codes or other regulations that may apply to the property, as these could affect the cost and feasibility of any renovations or expansions.
Investigate the local competition in the area. Is there a high concentration of similar businesses, or is the area underserved in a particular industry? This can help you determine the potential demand for your business or property. If there is a high concentration of similar businesses in the area, it may be more difficult to stand out and attract customers. On the other hand, if the area is underserved in a particular industry, it may be easier to tap into an untapped market.
Consider the potential for future growth in the area. Is the community experiencing population growth or economic expansion? Are there plans for new development or infrastructure improvements that could increase the value of the property over time? If the area is experiencing growth, it may be a good time to invest in commercial real estate, as the value of the property is likely to increase over time. On the other hand, if the area is experiencing declining population or economic stagnation, it may be less attractive for a commercial real estate investment.
By considering these five factors, you can make a more informed decision about the best location for your commercial real estate investment. It’s important to do thorough research and due diligence to ensure that you are making a sound investment that will meet your business and financial goals.
If you are contemplating moving your company to Worcester, Central Massachusetts or the MetroWest region, we encourage you to contact Kelleher & Sadowsky. With more than four decades experience, our team can often see inside the many particulars of a potential transaction and find ways to add value and creative solutions that others might not see.