You've no doubt heard the old aphorism that the three most important things in real estate are, "Location, location, location," and this applies to basically all types of properties. However, for business owners or commercial investors in particular, it's going to determine a lot about the success or failure of an organisation with a clear financial stake in the property.
Read on to get a better understanding of just why location will be so critical to the success of your commercial property ownership:
The single most important aspect of why location matters to your commercial property is that you want it to facilitate business activity, Socialface explained. That is, if you own a retail shop in the middle of nowhere or a warehousing facility far removed from land, sea or air freight transport, that's going to either hinder revenues or increase costs to a the extent that the business has difficulty operating.
There are some businesses that can only operate in certain places, but many more that will work just fine in a variety of locales. If your property is in a market where demand for such facilities is high, the cost to purchase the site is necessarily going to be higher. On the other hand, if you buy in a less in-demand location, you get a lower price, but potentially also less revenue. You certainly have to examine this financial give-and-take to figure out what's best for your needs.
If you're a business owner, you'll want to ensure your property is sufficient for current and future needs, JLL cautioned. Buying a facility that's too big with the idea that you'll "grow into it" might increase your costs — potentially to the extent that your business is held back. However, going with a smaller location to save money on ongoing property expenses might mean you need to move sooner than you'd like.
When you're thinking about buying a commercial property — either to start your portfolio or expand it — Ray White Surfers Paradise is here for you. We can provide critical advice at every step of the sales process to ensure you are set up for success with your new investment. Get in touch with us today to learn more about what we can do for you.