Why location matters in purchasing commercial real estate property

On Behalf of | May 1, 2024 | Commercial Real Estate

Owning and operating a commercial property can be an excellent investment for business owners. One of the factors you need to consider when purchasing your property is the location. Understanding the transportation infrastructure, economic standing, job market, accessibility and population trends in the area where your property is located can help you make an informed decision.

Conducting market research prior to purchase allows you to understand your target customer base and their needs. It may help you choose a location that makes sense as it ensures that you are serving them directly and providing something of value to them.

Here are factors to consider when choosing the location of your real estate property:

Job Market

People are willing to relocate where the job market is strong. It also means that the market is growing, and a growing market means there may be an increasing need for real estate properties in the area. Purchasing a property in an area with plenty of job opportunities can help you grow your business. This is true whether looking to lure quality applicants for your business or find a business to rent the property.

Transportation infrastructure

A good location tends to have a wide variety of transportation options. Public transportation can be beneficial and could include subways, trains, light rail and buses, to name a few. These areas tend to have bike paths and walking trails, too. Depending on the types of businesses you are hoping to draw to your commercial property, a location that gets heavy foot traffic near transportation hubs may be lucrative.


Purchasing a property in a location with a strong and diverse economy can also do your business favors. A community with one or more local drivers of economic activity tends to anchor a market and may encourage other companies and entrepreneurs to do business in the area. A heavily populated area with major economic drivers, such as big companies, universities, government activities, or technology hubs can help you grow your business further.

The saying, “location, location, location” may seem trite in terms of purchasing real estate property, but it is often a key factor that can make or break the future of your business.