How important is location when buying commercial property?

When you’re buying a house, you consider the location it is in and how beneficial that area is to you, and the same applies to commercial property. In fact, it might be even more important to choose the right location when making a commercial investment as the success of your business could rely on where it is, depending on the type of business you have and the audience you want to attract to it. In this guide we’ll be looking at just how important location is when it comes to commercial property and the factors you should consider when deciding on the right location.


How to choose the best location for your business

Commercial property requirements will differ from business to business, so what works for one type of industry won’t for another. For example, coffee shops and cafes will want to be situated in an area with a lot of foot traffic, probably within a local community where there are houses nearby so people could stop in and grab something on their way to work etc.

On the other hand, if your business is more corporate and based in an office you will likely want a more industrial location with other businesses in the area and other requirements that meet the needs of running your business day to day. With that in mind let’s look at the main considerations you will want to think about when deciding on the commercial property location for your business.


Targeting the right audience

This is mostly relevant for businesses in the retail sector, but all owners should think about how convenient the location is to get target customers through the door. Clothing shops typically do well when they’re near other similar stores so if you’re a fashion shop looking for a location keep an eye out for spaces on high streets, in shopping centres and malls, and anywhere else that features a hub of clothing shops.

If your business is focused on fast food or takeaway, you may want to consider whether the location can cope with a drive thru if you need one. It’s no good spending the time and money to put a drive thru on your building if it’s going to cause massive traffic and congestion problems. However, you would have a bit more flexibility on where you could locate your business, you don’t really need to be in the heart of the action, you could pick a quieter area as long as there was plenty of access for delivery drivers to pick up food from your restaurant and it was well-promoted to those who live within your delivery radius.

We’ve talked a lot about retail businesses but knowing your audience is beneficial to more corporate, B2B, businesses too. You will want to make a good impression on clients or potential clients that come to see you and location will be a big part of that. If you’ve chosen a suitable building in a business-focused, professional area that’s quite modern and fresh, clients will form a positive perception of you as a business.

Whereas they could be put off if you’re in a rundown area that comes across as a bit dangerous and uneasy. Ultimately, you should think about your ideal customers and ask yourself if that particular location will be best placed to encourage them to buy from or work with you.


Accessibility of the location

Do customers need to be able to get to your business on foot or by car? Is there suitable parking in the area for both customers and employees? Are there shops or cafes around where employees could easily get to for lunch if they wanted or needed to? Does the layout of the area allow for easy disabled access to your business? These are all questions you will want to think about when considering accessibility in an area.

Parking is a big factor for many commercial businesses today, customers and employees need to have somewhere to park so they can get your business easily, if not, customers will probably just look for somewhere else to go. Also, if the property is raised and only accessible by stairs without a ramp, this would be very challenging for disabled individuals or families with prams. Think about the accessibility requirements for your business and look at locations that make it as easy as possible for people to get to you.


The type of area

We touched on this briefly above but it’s important to consider the type of area your business is going to be in before committing to a commercial property. If it’s a more residential area and you’re the type of business that needs to be in a built-up, business hub then you know that won’t be the right type of environment for your business to be. However, if you’re a beautician or hairdresser, you can be in a residential area as you will generate local business from those who live in the area and can easily access your salon by walking or driving. You need to take into account what your business needs from the location as well as what you can bring to the area with your business.


Purchase price

Of course, location isn’t the only factor that you need to weigh up when choosing a commercial property, the cost of buying the building is important too. You could find the perfect location that ticks all the boxes for what you want to make your business successful but if it’s completely unaffordable or stretches your budget that little bit too far then you won’t be able to go for it.

Trying to pay for a space you can’t afford will only put pressure on your business to do well quickly and could result in further problems if you can’t give the business time to find its feet. Plus, there will be other costs involved that you would need to plan for like the commercial conveyancing. So, even though the location is extremely important when buying commercial property, some compromise might be required in order to comfortably fit in your budget.

This doesn’t mean you can’t have a great location for your property because there will be highly affordable premises in ideal locations when you start looking. Be mindful of rising and falling property values though and make sure you are paying a good price for a location that will likely continue to serve your business needs in the future. Unexpected occurrences can happen but going where the trends of the area are in your favour will certainly help.



Overall, location is one of the most important factors you should look at when buying a commercial property for your business. As you can see, there are so many questions and location features that you will be thinking about in order to choose the exact right area for your business to be successful in the long term.

Found the perfect property and location and ready to buy? Our team of commercial conveyancing solicitors at Toomey Legal are on hand to help. We have extensive knowledge and experience in both residential conveyancing and commercial property conveyancing that will ensure your buying process goes quickly and smoothly. Contact us today to discuss your needs and if you have any questions, whether you’re buying or selling a property we can ensure it is handled professionally and successfully.