The Ideal Location: Choosing a Commercial Site to Build On

If you are looking to build another commercial building, it can be an overwhelming task. And it is crucial that you take the proper aspects into account, especially location which is the most critical. If you don’t, you could waste money, time, and energy. In the meantime, your competitors could build elsewhere and start eating up your market. To avoid this and to promote better profits from building, consider these following important elements when deciding which commercial site to build on:

Proximity to Other Businesses

One of the biggest clues to whether or not you should build on a site is if it is close to other businesses. This can go two ways however. If you are a retail business or have customer or clients of any sort visiting you, you want to be in a busy area with other businesses. This is going to increase revenue via foot traffic. However, if you simply need an office building, then being a little farther out can actually give you a better price.

Types of Nearby Businesses

The businesses around the commercial site are indicators of the kind of area you are building in. It is often better to have similar and non competing businesses in the area. That way, people will be visiting you but not going right over to a competitor.

Ease of Access

How easy is the site to access? Is it right off a main road? Do you have to make many awkward turns before finally arriving? This might be a turn off. Look for convenient sites that don’t require a degree in neurosurgery to access.


Your business obviously has certain customers that you focus on. When building on a commercial site, you want to leverage the local demographics. Do your ideal customers live nearby? If not, you might consider finding another location.

Local Economic Trends

The economy is something you have no control over. However, you can look at the facts of your local economy in that region and ask yourself if now is the right time to build there. Strategic timing and location are essential to prevent building at the wrong time or place.

Competition and Barriers to Entry

How many competitors of yours are already in the area? Is it going to be tough to break into the market? Are other builders and businesses taking up all the real estate and driving it sky high? These are crucial elements to consider before breaking ground.


Always negotiate when building on a site. Negotiate the lease fees, the construction labor costs, the materials, and other fees. Remember, at the end of the day, that there is other land that you can build on.

Insurance Options

What kind of property or building insurance are you going to have access to? Some sites have limits on how much they’re willing to pay out for a policy. Shop around until you’re happy with the insurance available to you.

Government and Regulation

The local government can be your best friend or worst nightmare. Look at the past court history and litigation involving government entities, including fines. If the local counsel has a habit of harassing builders or new building owners, you might want to start looking elsewhere.

Picking a commercial site to build on is one of the most important decisions you are going to make with your company. Don’t take a shortcut by failing to take into account all of the important factors above. Instead, enjoy the feeling of picking the perfect site and building with confidence by reviewing the aspects of a commercial site above.

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