Location, Location, Location!

By
Real Estate Sales Representative with Century 21 Dreams 4793863

Finding Your Ideal Commercial/Industrial Building - Part II

 

Location-Specific Advantages (LSA’s) enable a company to improve its bottom line and rate of growth by strategically finding the optimum place to operate as compared to other locations.

 

 

We always hear the same phrase associated with real estate. “Location, Location, Location.” It may be a cliché but all clichés have some basis in reality and this one is no different. The location of your plant will affect your business, positively or negatively, for however long you are there. In addition, how it affects your business can, and probably will change over time. The location will affect and constrain your access to:

Cost – Real Estate & Property: The purchase price required, associated land transfer taxes & fees, land/site developmental requirements, building and/or renovation costs for this site and how do they compare with alternative sites?

CustomersYour local prospects & clients: What is their purchasing power and product preferences, are they growing/stable, and the degree of competition (yours & theirs)? Collaboration potential for pilots / start-ups and the opportunity to share expert personnel and high capex infrastructure. Can a premium be charged in the area due to your local presence & support?

Further Away Clients: How easy is it for them to visit your plant? Are there hotels, restaurants, and entertainment available within a reasonable distance?

Work Force / Skilled labour – How many people will you need to hire and what training will they require? Are local resources good enough for your technology, competitive rates & adequate numbers of local labour, or will you need to spend a lot of time and money in training people up to your level and/or relocating skilled people?

Suppliers – How will your suppliers ship material to your plant? Cost impact +/- due to your location as compared to other locations. Do they have a local presence that offers some synergies?

Services – Easy to obtain, reasonably priced, stable and adequate access to water, electricity, gas, etc that is necessary for your processes, both now and as you grow.

Transportation – Access to trucks, trains, containers, maybe even helicopters. How to move them in, un/load and out of the facility as effectively as possible? The potential for transport pinch points: e.g. port & rail congestion, slowdowns / availability, history of labour issues, overall condition, and safety/security considerations.

Expansion – Does the site size allow for future expansion both for your current products and for any new products you may developeGovernmental – Taxes, regulations, incentives, dis-incentives: Tax holidays or breaks, operational restrictions, allowable business types / zoning, environmental permitting and ability to expand your footprint.

Neighbours – Are you in the middle of an industrial park or an urban area. Community Support & Acceptance: Will your normal operations and transportation requirements create friction with people in your immediate area?

All these and many more considerations are important and must be considered before entering into any agreements. You are going to be using the new facility for a long time. It is important that it meets your needs and that you can be comfortable with the location both now and for a long time into the future.

 

Stay tuned for part III -- SIZE and why it really does matter!

 

Contact us when making your next move!

Edward Drennan, P.Eng.  30+ years Industrial / Commercial Experience

Your Trusted Partner in Real Estate

 http://www.century21.ca/edward.drennan  (289)-838-5105

              AND

Ed White, CPIM CIRM CSCP CPF 6sigma – Jade Trillium Consulting

Making processes & organizations more effective

http://jadetrilliumconsulting.com   (905)-483-5984

 

Not intended to solicit buyers and sellers currently under contract with another brokerage

 

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Topic:
Real Estate General Information
Tags:
industrial real estate
toronto real estate
commercial real estate
oakville real estate
oakville realtors
real estate cost benefit analysis
building factors

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Rainer
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Livia Drennan
Livia Drennan | Interior Design - Oakville, ON

For a small businiss owner looking for a business place to buy or to rent, this post and the series are very informative and helpful. Thank you!

Jun 11, 2017 08:36 AM #1
Anonymous
Bill White

Growing a business and determining current needs and future growth does not require a crystal ball; it requires forthought and flexibility. Make the best decisions for your business on current demands allowing for growth but at some point change will be required. Align yourself with key professionals that can guide you through important decisions like real estate rentals and purchases to give yourself the best possible chance of achieving success for your business.

Nov 28, 2017 08:30 PM #2
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Rainmaker
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Edward Drennan

Serving the Oakville, Ontario Area
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