How can you conduct a location analysis for your business?

5 Key Factors: 1. Visibility: Ensure the property is easily noticeable from major roads or high-traffic areas. High visibility boosts brand recognition and attracts walk-ins. 2. Footfall: Analyze the daily and peak-time pedestrian and vehicular traffic around the property. Businesses thrive on steady footfall. 3. Audience: Understand the demographics of the area—age, income levels, and preferences of the local population. A mismatch between your target audience and the location can impact business. 4. Gentry: Assess the profile and buying behavior of the community around. Look for areas with affluent gentry 5. Potential: Evaluate future growth opportunities—upcoming developments, infrastructure projects, or shifts in urban planning.

Es importante definir los objetivos y como la ubicación contribuye a alcanzarlos. Por ejemplo un restaurante puede priorizar zonas de alta frecuencia, mientras que un almacén accesos rápidos y fáciles. Una inmobiliaria debe priorizar una zona urbana con cercanía a colegios, bancos, centros de salud para que los clientes puedan cubrir necesidades básicas.

Here are some steps to conduct a location analysis for your business: Define your target market: Identify who your customers are, where they live, and their buying habits. Analyze demographics: Study the demographics of potential locations, including population size, age, income, education level, and cultural background. Consider competition: Determine if there are competitors in the area and how they might impact your business.

In commercial real estate, we do this for clients when a potential Re-Location is coming up. Our first step is typically to gather sales comps as best as we can within the immediate intersection of users. If we are MCD, then we want to see if we get a sense of how Wendy's is doing, etc. Then, we gather comparable rental rates and compare them with our proposed increase.

Incluye un protocolo a seguir, un cheklist mínimo que el terreno debe cumplir. Como información demográfica, patrones de tráfico peatonal y vehicular, competencia en el área, costos de alquiler o compra y regulaciones locales. Así mismo como el estado del predio, saneamiento físico - legal ya que resolverlos estos temas podría repercutir en plazos y costos adicionales.

Gathering relevant data is a critical step in selecting the right location for business expansion or relocation. Beyond secondary sources like market reports and government statistics, primary research through surveys, interviews, or site visits offers invaluable insights into local market dynamics and community needs. Understanding customer demographics, competition, labor availability, and infrastructure quality allows businesses to make informed decisions. Moreover, evaluating taxes, regulations, and environmental factors ensures that your location aligns with long-term strategic goa

Para analisar a localiza??o ideal, considere dados objetivos, avalie infraestrutura e conecte-se com a comunidade local. Isso garante estratégias alinhadas às necessidades reais e maior potencial de sucesso. 1. Modelos de Pontua??o: Use critérios como popula??o, renda e logística. Pontue e priorize locais com maior retorno. 2. Viabilidade Operacional: Analise infraestrutura, custos e m?o de obra para evitar riscos. 3. Engajamento Local: Ou?a stakeholders para alinhar oferta às demandas regionais.

There are other evaluation or assessment methods available like: 1. Scoring Models: Assign a score to each location based on comparison of relevant numeric value. 2. Gravity Analysis: You can map intricate factors of customers and make accurate forecasts of how many customer swill visit a particular location and potential sales at that location 3. BCG matrix: Recognise relationships, determine measures and make strategic decisions

Establishing clear evaluation criteria is essential for objectively assessing potential locations. By prioritizing factors aligned with your business objectives—such as market demand, accessibility, competition, and labor availability—you ensure that your decision is driven by strategic needs. Assigning weights to each criterion based on its importance allows for a more nuanced comparison, helping you make data-driven decisions. For example, if market growth is your top priority, it should carry more weight than factors like infrastructure or taxes. A structured evaluation process reduces risks and leads to better long-term outcomes.

Scoring and ranking potential locations is where data-driven decision-making truly comes into play. A simple 1-5 or 1-10 scoring system offers an intuitive way to assess performance against your criteria, while more advanced methods like AHP or TOPSIS can add rigor and precision. These approaches allow for objective comparison by incorporating weighted factors and ensuring a more balanced evaluation. Once locations are ranked, the result is a clearer view of which option best aligns with your strategic goals. Consistently applying this process improves decision-making and minimizes biases.

As mentioned above once you have data for as many of your similar users as possible in the immediate area or in areas that trade similarly we must rank them. The first thing that will get overlayed is an updated demographic report and with that, we compare what the site demographics looked like when it was proposed and then again we review what they will look like 5/10 years out. Really want to understand is this the best place today or will the area decline or improve during the course of the lease with that info it then provide tenants with ammo to negotiate what makes sense today and in the future.

Understand Your Customers: Start by identifying where your target customers live, work, or shop. The closer you are to them, the better your chances of success. Observe Foot Traffic: Spend time in potential areas. Watch how many people pass by at different times of the day—real-world observation beats guesswork. Test the Area: Before committing, set up a small pop-up shop or kiosk to see how well your product or service performs in that location.

Are you future proof? Corporate grade tenant usually put together leases that are very long term. We're talking decades when combining the initial term and the multiple renewal options. Such long term perspective should incorporate thinking beyond what the real estate needs are today, you should look as far forward as possible. One example that was buzzing around in the recent @icsc event in NYC is the future use of drones. Does your real estate criteria include landing and launching areas for drones. You might send deliveries to consumers or receive shipments from suppliers. Walmart is already experimenting with drone deliveries... the future is already here!