When opening a store, few decisions are bigger than buying or leasing commercial real estate. The location you choose could make or break your chances of long-term success. Here are a few key factors to consider when deciding whether a property is right for your business.

A Guide to Buying Commercial Real Estate

1. Accessibility

Your location should be easily accessible for both customers and employees. While areas with higher levels of foot traffic are great for retail stores, be mindful of whether or not a particular area has adequate parking or is served by public transportation. Research the demographics of the area and compare that to your target audience—ideally, there should be some overlap. Ask whether a delivery truck could easily get to your store if you are selling retail products.

2. Ongoing Expenses

Your ongoing expenses will involve more than your monthly lease or mortgage payment. Property taxes, utility bills, landscaping, upkeep, and remodeling can also cut into your profit margins. When buying, be sure to account for these expenses in your budget. If you are leasing, check with your landlord to see which costs you will be responsible for paying. 

3. Local Competition

The other businesses in your area may be direct competitors, or they could offer complementary products or services that attract a similar clientele. Positioning your business near others with similar demographics can make a big difference for your sales goals. However, your business should be distinct enough from others in your area so that you don’t face much direct competition.

If you need help evaluating commercial real estate options, contact Jeffrey Anderson, Associate Broker, Capital Real Estate Advisors in New York, NY. Drawing from over 14 years of experience in New York City as an urban designer and architect, this realtor uses his in-depth knowledge of the area to help you buy or lease a property that fits your business’s needs. To learn more, visit him online or call (917) 568-9642.