BARBERMurphy Group

In these uncertain economic times, businesses are spending more time and giving more attention evaluating their options before deciding when and where they will make their next business investment. While it is true that "location-location-location" is still the driving force in most business location decisions, there are a number of other factors that should be weighed by the decision makers. Factors such as knowing the marketplace, considering the overall projected costs, and avoiding the "pitfalls and unknowns" need to be fully understood.

The following is a list of important factors and considerations that a business needs to assess in making the right business location decision:

• Overall analysis of the long term needs of the business - Will the location allow for expansion as the business grows? Ensuring that adequate space is available and at the right price will benefit the business in the long run. Also, is the location adaptable to other uses (multifunctional) and considered "marketable" if the business decides to move at a later date. 

• Is the community "business friendly" without excessive regulatory controls? While most progressive communities have requirements such as zoning, building codes, it is important that the policies and procedures are clearly laid out and consistent to avoid delays in obtaining the necessary permits and approvals. 

• What is the local tax structure and how does it compare to other adjoining areas? Property taxes vary from community to community depending upon the level of public services available. Does the business location offset the taxes that would be required? 

• Are there any financial programs and incentives (i.e. TIF, Enterprise Zone, low interest loans, etc.) available that could reduce some of the initial capital and start up costs? Many communities are aggressive in offering a number of programs to entice and attract new business development. Understanding programs that are available and advantageous to a business, along with their specific requirements and procedures can make a difference in selecting the appropriate location. 

• How convenient is the location to your clients, customers, and employees and is the location easily accessible? A highly visible and high traffic location is essential to most retail, restaurant and hospitality- related businesses but may not be as crucial to service- oriented businesses.   
        
• If the business plans to rent or lease a facility, are there provisions to extend the lease period and is the lease rate and other associated costs competitive and comparable to other like properties in the marketplace? There may be additional fixed costs that are not clearly stated in the lease that will need to be factored into the overall budget. The decision to either purchase or lease requires consideration of a number of factors that will be covered in a subsequent article.   

Needless to say choosing the right business location requires precise planning and research that a Commercial Realtor such as BARBERMurphy Group can provide. The professional staff at BMG has diverse backgrounds and experiences and brings a wealth of information to the table to provide our clients with the necessary information to steer through many of the challenges and obstacles as it relates to making an informed decision on business location.

Mike Pierceall AICP CEcD
Broker Associate

Mikep@barbermurphy.com