For any business owner, securing the right real estate for a brick-and-mortar location is a critical decision that requires careful consideration of several market factors. Decisions made during this process can have a long-lasting impact on a business’s success.
Below, Fast Company Executive Board members offer valuable tips to help you make informed decisions when selecting a physical location for your business. From understanding current market trends to evaluating the long-term potential of a location, here’s how these key elements can make or break the success of the business.
1. PRIORITIZE VISIBILITY.
Visibility is the most important thing, and you will pay a premium for that. However, you will get your money back. Going for a lower-cost, out-of-the-way building is going to be problematic in both advertising and getting your customers to find you. It is a myth that people love hidden places. Some do if they find them. The problem is finding them. – Baruch Labunski, Rank Secure
2. LOOK FOR COMPLEMENTARY BUSINESS.
Scout areas with complementary businesses nearby. A cafe might thrive next to a bookstore, or a gym could benefit from proximity to health food shops. This symbiosis can boost foot traffic and create a more vibrant local ecosystem for your business. – Frederik Bussler, Bussler & Co
3. FIND YOUR CUSTOMERS.
Look for locations where your customers live or work. Study the traffic patterns to make sure your location has easy access, is on the right side of the street, and is visible. Visit the location, study what other businesses are nearby, and assess if they are complimentary to your business. Look at the price per square foot and analyze what other spaces have sold recently to compare. – Jo Ann Herold, Herold Growth Consulting
4. LEARN ABOUT FUTURE DEVELOPMENTS.
Evaluate the local community development plans. Understanding future infrastructure projects, zoning changes, and neighborhood revitalization efforts can provide insights into long-term viability and growth potential. I think this can help one establishment benefit from increased foot traffic and improved local amenities overall. – Dan Sorensen, Air National Guard
5. UNDERSTAND LOCAL DEMOGRAPHICS.
Business owners should prioritize understanding local market trends and demographics, analyzing foot traffic, competitor locations, and rental rates. In today’s market, knowing the importance of flexible lease terms and negotiation can offer significant advantages, helping to secure a prime location and manage costs effectively. – Stephen Nalley, Black Briar Advisors
6. CONSIDER FOOT TRAFFIC.
Evaluate the foot traffic patterns and demographic trends of the local area. Analyze the area’s population growth, income levels, and consumer behavior to ensure that the selected location is in accordance with the target market. In addition, evaluating the community’s atmosphere and the businesses in the vicinity can offer valuable information regarding potential consumer bases. – Christena Garduno, Media culture
7. ALIGN WITH YOUR TARGET AUDIENCE.
When seeking real estate for a brick-and-mortar location, business owners should prioritize assessing foot traffic and local demographics. Ensure the area has sufficient pedestrian flow and aligns with your target market to drive customer visits and sales. This helps maximize visibility and revenue potential. – Maria Alonso, Fortune 206
8. FIND A CENTRAL LOCATION.
Take it from someone in real estate investing. Pick a place that has high foot traffic. In this time of increased online shopping or retail, fewer people are going into stores and malls. Although it has recovered in recent years, you are still dealing with less traffic. A cheaper rental place might not be a good idea if no one passes by unless your business is the type where people seek you out. – Zain Jaffer, Zain Ventures
9. BE ACCESSIBLE.
Prioritize location based on customer accessibility and traffic patterns to significantly impact foot traffic, customer accessibility, and overall business success. Understanding current traffic patterns and customer behavior is essential, especially in today’s dynamic market influenced by changes in work habits, economic conditions, and urban development. – Britton Bloch, Navy Federal