Location, Location, Location

Now, I know every business owner has heard over and over how location can make or break a business. And yes, the idea of finding a superlative spot for a business seems simple, but when it comes down to it—what exactly constitutes a perfect location? 

Price, quality and amount of space needed are obvious factors when choosing company’s location, but the key is to secure a location that directly correlates to the organization’s revenue—customer base. It may seem obvious, but we often get requests that contradict where a client should locate their next facility.  Companies need to start their real estate search by understanding where their revenue comes from.  An organization that provides legal services to clients in and around downtown should focus on office locations that are in the same vicinity.  Title companies need to be close to residential real estate brokers, and orthopedic surgeons should be near or next to a hospital complex.  Proximity to clientele or revenue generation should be paramount.

When companies are in the real estate market, they should also consider:

• Location driven economics- Keep in mind that every market segment has different lease rates and class of space.  
• NNN Expenses - Don’t forget that each county and municipality will differ in utilities cost, taxes and common area charges. Just because your lease is being offered as a full service rate doesn't mean they don't pass those costs through.  You will pay these costs regardless.
• Economic Incentives - Before signing on the dotted line, research the potential economic incentives available for your company to locate/relocate in that area.  States, counties and cities are providing strong incentives for job creation and product production.  Stop by the chamber of commerce, along with the local EDC, and explain your business and potential employee growth. They may be able to offer development incentives, training dollars, or tax abatements depending on the size of space, number of employees and products created.
• Time & Convenience- Your time is money—it is the same to your employees as well.  Find a location that maximizes productivity.  Unless you are based in Los Angeles, Chicago, New York, or DC, an hour commute for your key employees is too far away.  Before you research locations, produce a zip code analysis that tabs where each employee lives and then pick an area that will best fit the group.  This isn't a democracy, but it does help alleviate irrational decisions. 

To narrow down your commercial real estate search, please visit http://www.thestonegroupcre.com/stone-group-research-request-form.html