To say that location matters for commercial investment properties for sale is but the understatement of the century. If anything, it dictates a lot of factors about the assets including its monetary worth and eventually the price by which it can be sold in the market. But to be more specific, we’ve broken it down to more digestible parts so that even the relative new comer can benefit from this discussion too.
- Market Value
Let’s tackle the elephant in the room. It doesn’t escape anyone that similar assets can be priced differently depending on where they are situated. This is because some areas come with a mix of factors that make commercial properties more effective for their intended users. For instance, a retail space in a busy city is more expensive to acquire than one in the countryside.
Location also dictates how convenient the asset will be in terms of reach, mobility, expansion and operations. Some areas make it easier for companies to move about as they go on with their daily operations while some do not. Some cities have fairly flexible constriction laws whereas others don’t. As for reach and mobility, we move on to the next bullet point.
Commercial property investments need to be highly accessible not just for customers but for every significant party in general from owners to employees to vendors. This is why assets that are easy to reach either by private or public transport are more valuable and functional, for instance those near airports, train stations and bus terminals.
- Foot Traffic
In layman’s term, foot traffic can be synonymous with exposure or more specifically the degree of it. Since we’re talking commercial property investments, it’s a no brainer that we want a higher foot traffic for better brand exposure and essentially this makes them more financially valuable now and in the future.
The presence of other properties also plays a role in the market value of a commercial asset. Their location still plays a role on this because not all places are crawling with establishments or infrastructure that pull the lever up and make the investments appreciate over time.
The location of commercial property investments also says a lot about their safety and security. Some areas have higher crime rates than others and there too are those that are more prone to natural disasters like flooding and typhoons for instance. Of course, everyone wants to safeguard life and property so the more secure the better.