It used to be that most real estate location decisions were made based upon where the owner lived. However, there is a lot more to this important decision than that.
For retail business owners, it is best to understand what kind of customer they are trying to attract, what age group, and what income level. Extensive demographic studies of different areas can be run to see if potential locations “fit” their customers. Mapping of their competition can also be done. Sometimes they may want to be right next to the competition, like CVS and Walgreens.
Office users also have their own specific set of needs and criteria. It’s never a great idea to move a large number of employees across town, because some of their employees will be closer to their homes, but others will be farther away. Having said that, it is important that the new space works better for them than their old space did. Touring their current space to find out what they like about it and what doesn’t work is always a good idea. Moving locations is a chance for them to get a fresh work environment that gives their employees a place they want to come to work to every day.
There are different classes of space available – A, B, and C. Class A is the nicest, with great finishes like marble, granite, etc. Class B is in the middle, and Class C will need some fixing up. The class determination is dependent on the businesses image (think of law firms or financial planners). If they have clients coming to visit, highway access, street access, and signage become more important.
With industrial users, other factors come into play. Things such as dock doors, drive-in doors, power requirements, office size, truck parking, highway access, rail access, and ceiling height are the considerations.
Then, of course, economics come into play. There may be incentives from the states or cities for business to relocate there. I’m sure everyone has read about the border wars in Kansas and Missouri, where companies will jump the state line in order to receive a great economic package.
Finding the right location is so important to a company in many ways, for employee satisfaction, customer satisfaction and a design that make the business most efficient and profitable. Business owners should never throw a dart at the map when making their real estate decisions. Instead finding good counsel to help guide them into making the best decisions possible is ideal.