| People often say there are three things that | | | | the shopping center. Doctors always like the |
| determine the value of a property: location, | | | | medical building near the local hospital as it is |
| location and location. Location is also an important | | | | convenient for them and their patients. |
| factor in commercial real estate investment. For | | | | 6- Easy to make left turn: The property should |
| retail properties, location is the key as a lousy | | | | have ease of ingress and egress. If it's hard to |
| business will be successful it is at a good location. | | | | make left turns, shoppers will less likely come to |
| When a commercial property is at a good | | | | the shopping centers. And thus it makes the |
| location, it will attract tenants to the property and | | | | property less desirable to the tenants. |
| retain them there. It will also attract the | | | | 7- Easy to find a parking space: People don't like |
| customers of your tenants to the property. As a | | | | to go to a place where they cannot find parking |
| result, you as the owner of the property can | | | | spaces. Commercial property must have at least |
| demand the higher rent & price for the | | | | 1 parking space per 1000 square foot of leasable |
| property. So how do you as an investor | | | | space. It's more desirable to have 4-6 parking |
| determine if the property you would like to invest | | | | spaces per 1000 SF. The width of parking space |
| is at a good location? Look at the property and | | | | is also important. Who wants a ding on the door |
| see if the property has these features: | | | | after a shopping trip? |
| 1- Near major roads and freeways: This provides | | | | 8- Signage: Signage is an important part of a |
| easy access to the property so the customers of | | | | commercial property. Customers often look for |
| the tenants can quickly and conveniently drive to | | | | the name of the business rather than the street |
| the property. | | | | address. A large and tall monument sign in front |
| 2- Near busy street with high traffic volume: | | | | of the property with the names of the businesses |
| Commercial listings often mention the traffic | | | | in the property is always desirable. |
| volume in term of Cars Per Day (CPD). More | | | | 9- Able to attract and retain tenants: Your |
| traffic means more exposure of your tenants | | | | tenants will look for a building and neighborhood |
| businesses to more potential customers. This is | | | | that are appealing to them and their customers to |
| free advertising to your tenants. The traffic could | | | | determine if they should sign or renew the leases. |
| also be foot traffic. For example retail stores at | | | | So quality of construction, property condition, |
| Pier 39 in San Francisco benefit from the high | | | | landscaping, the appearance of the building and |
| volume foot traffic from the tourists. | | | | surrounding area are all important factors to keep |
| 3- Near anchored tenants: Big retail stores like | | | | the property 100% leased. |
| Wal-Mart, Albertsons, Home Depot instantly bring | | | | 10- In a stable or growing area: You want to |
| lots of customers to their stores. So if your | | | | invest in an area where population has increased. |
| commercial property is near an anchored tenant, | | | | Review the demographic data in the property |
| it will benefit from the high volume traffic. | | | | brochure to see |
| 4- At an intersection: This will give the property | | | | - How many percents the population has |
| more visibility as it has more frontage feet. If the | | | | increased in the last 5-15 years. |
| property is located at a signalized corner then it's | | | | - How many new homes have been built in the |
| even better. As cars stop at the traffic light, | | | | last few years. |
| people in the cars will notice the stores in your | | | | - What the median income in the area is within 1-5 |
| property. The traffic light is also an indication the | | | | miles radius from the property |
| intersection has more traffic. | | | | All these things will give you a picture if the town |
| 5- Near local amenities: Stadium, college, big | | | | is growing. |
| shopping mall and hospital will bring more traffic to | | | | |