The truth is, location can make or break a speculation project, drive the success of an up-and-running business or squash a longtime sleeper investment. Location carries a lot of weight.
Your professional Realtor knows the importance of location. When you engage that Realtor for assistance and guidance in acquiring or selling commercial property, listen carefully to the advice he or she gives, keeping your specific project in mind. The many location factors that must be considered will depend upon the nature of your commercial project. Are you interested in long- or short-term return? What market share are you targeting? What kind of company do you want to keep?
A “prime” location for some venues, five to 10 years from now, may not be a smart choice right now. Knowing an area’s regional development projections is valuable insight that your Realtor will bring to light where it applies to the commercial property you may seek to buy, or property you are considering selling.
Over time, locations flux in value. A once prosperous location may have deteriorated over time and, short of district renovation and redevelopment, may present difficulties for sellers, and caution for buyers. When a community experiences a focus shift for its business clusters, the older business areas can find themselves in crisis mode and be confronted with complex survival strategies. In such situations, location becomes the deal driver.
Whether your commercial property interest is retail, professional services, manufacturing, storage and warehousing or just raw acreage, it is important to know some basics such as the community’s median income, freeway access, potential employee pool, quantification of existing competition and many other factors that would seriously impact your choices and decisions. Your professional Realtor will investigate what you have in mind, at length; and, then, present you only with relevant possibilities.
What happens if you disagree with your Realtor’s assessment regarding location and its bearing on your goals? You would probably be confronted with one of your most difficult dilemmas. While there are no “guarantees” when it comes to location relevant to trends, your Realtor’s experience and knowledge should tip the scales.
In our County of Lake — as with other counties — the collection of towns and regions will reflect upsides and downsides relative to your location challenges. The county seat town might have the most visual appeal, historic structures and visitor draw. The other towns usually present a variety of characteristics ranging from under-developed and struggling to commerce poor/residence rich, or, under-developed with extraordinary potential. The categories will vary; and, the insights about those categories constitute the huge value advantage you have through your relationship with your commercial Realtor.
Real estate values are trending upward, and opportunities are escalating. While it is great to feel the excitement and wish to participate in the opportunities — make sure you fully explore the importance — and relevance — of location with your professional Realtor, with your personal project in mind.
Jim Magliulo is a full-time commercial real estate agent in Lake County and can be reached at (707) 263-5729 or jim@countryair.com.
