Why Location Still Matters: The Key Factors for Commercial Success
The decision regarding where to locate a business is one of the most important. Location plays an important role in attracting new employees and the point of satisfaction for the best employees. Many of them pay close attention to the location to promote work-life balance. Perfect location decisions have major implications for the growth and productivity of the company in the long term. In comparison, poor decisions cost millions in lost talent, productivity, and investment.
As we know several businesses lack strategic planning which has negative impacts on growth. However, if the company decided to decentralize to cut the costs. Commercial property expenses were indeed decreased but the move also resulted in the loss of talent and clients costing the business owner up to millions of dollars in the long run.
So that is why location is still considered an important point and leaving an important strategic location leads to disaster.
On the other hand, another global corporation decided to consolidate its back office support function into a few specific locations. This not only led to around US $185 million of cost savings but also boosted its ability to secure software development talent.
The Key Factors for Commercial Success
Why should we not consider the strategic location during decision-making in order to avoid losses? A number of factors are mentioned below that are key drivers.
1. Attracting and retaining talent:
In most cases, this will mean an ideal center location. City center locations draw in an increasing number of young and international clients, and these places become easily accessible for employees, new talent, and clients.
2. Real estate costs:
Real estate cost is the second largest expense after the labor cost for assurance of real estate efficient working.
3. Clusters:
Having networking opportunities to connect potential business companies could be best for the business owner to access the quality talent pool, regulatory bodies, economies of scale, and potential investors. Moreover, this cost is expensive along with having advantages and disadvantages and deciding what’s important for your working organization.
4. Regulation and tax:
Thinking about regulation changes speaks to your C suite and agrees with rules and regulations. Always give priority to signing an agreement with those who have lower tax rates or fewer rules and regulations to continue their business activities.
5. Growth or a change in corporate strategy, technology, or leadership.
Different structure designs work for different business models. In most cases, some of the corporate companies are choosing a centralized hub with a meeting room while supported by multiple smaller spokes anywhere. Moreover, others manage large offices in centrally located corporate headquarters. Again, prior focus on what works best for the functioning of your business.
6. City dynamism:
In European countries, governments are going to transform power to cities and regions which may offer you grants and stimulate growth for business. One thing needs to focus on checking and coming to new urban centers that incentivize business as this is a big leverage for the business owners.
7. Accessibility:
Accessibility seems simple whether it’s accessing new sectors, markets resources, or customers. Transportation is critical for not only your workers but everyone you work with to get maximum benefits. Location decisions can be daunting tasks. It involves assessment of the commercial business requirements, consultation with stakeholders, checking potential locations, conducting site visits, and signing a lease agreement with the best market dealer. No doubt it’s a difficult task but with the right choice things will be a little easier for business owners.
Finding A Partner
The right partner will help you to make the right direction, provide options for you to consider your requirements, and provide you with possible solutions that best fulfill your needs. For instance, 25 Van Zant offers you the best option to grow your business according to modern trends. It is leading industrial spaces that not only increase competition but also companies without strong HR functioning could gain potential growth.
In addition, highlighting the future foreseeable challenges the company will be able to ensure that human resources is ready for the next move. The redesign of their company footprints and consolidation of high-cost functions into lower cost not only benefit the organization by saving the amount but also enable it to prioritize its core business while letting us do what we do best for real estate.
Looking To The Future
Location planning allows you to future operations by following the current trends but this is not the last point that needs to be looked at. The new trend of working and the rise of technology is putting pressure on all businesses including commercial real estate businesses to review their real estate spending. We must keep an eye on the latest trends and properly review our portfolio to check whatever tomorrow brings. It is the only solid option for commercial business success.