Introduction
Location is one of the most decisive factors in any commercial property purchase, but it needs to be assessed in a very different way to residential property.
For commercial buyers, the right location is not simply about prestige or postcode. It is about how effectively the property supports the business or investment over time — operationally, financially and strategically.
A well-priced property in the wrong location can quickly become a constraint rather than an asset.
Understanding Location in a Commercial Context
Commercial locations should be assessed against function, not assumption.
Key questions include:
- Does the location support how the business actually operates?
- Is it accessible for staff, customers, suppliers and logistics?
- Does the local environment support future growth or flexibility?
A location that works today but offers no room for expansion, adaptation or alternative use may limit long-term value.
Workforce and Accessibility
For owner-occupiers, proximity to the workforce is often critical.
Consider:
- Public transport availability and reliability
- Road access and parking provision
- Travel times for existing and future staff
Labour availability varies significantly by area. A location with lower acquisition costs may prove more expensive if it results in higher staff turnover or recruitment difficulties.
Customers, Clients and Footfall
For customer-facing premises, visibility and accessibility can directly affect revenue.
Factors to assess include:
- Natural footfall levels
- Passing trade versus destination use
- Ease of access for customers
- Nearby complementary uses or competing occupiers
In retail and leisure sectors in particular, micro-location often matters more than the wider town or city.
Supply Chains and Logistics
Industrial, warehouse and distribution properties require a different lens.
- Location should be assessed against:
- Proximity to key transport routes
- Access for HGVs and service vehicles
- Local congestion and delivery restrictions
- Distance to suppliers or customers
Seemingly minor constraints — such as restricted delivery times or poor yard access — can materially affect operational efficiency.
Local Planning Policy and Use
Planning policy can vary significantly between local authorities and directly affect how a property can be used, adapted or redeveloped.
Before committing to a location, it is important to understand:
- The local authority’s planning framework
- Whether the existing use is secure
- How flexible the property may be for future change
Since the introduction of the Class E use category, some commercial locations have become more flexible, while others remain tightly controlled. Understanding how planning policy is applied locally is essential.
Regeneration and Long-Term Outlook
Location should also be assessed with a forward view.
Consider:
- Planned infrastructure improvements
- Regeneration schemes
- Changes to transport links
- Shifts in local commercial demand
Areas undergoing regeneration may offer stronger long-term upside, but they can also carry short-term disruption or uncertainty.
Location and Exit Strategy
Ask:
- Would the property appeal to alternative occupiers?
- Is there a healthy resale or letting market in the area?
- Are there comparable transactions locally?
A location that supports multiple exit routes generally carries lower risk.
Professional Insight Matters
Local market knowledge is often the difference between a good purchase and a costly mistake.
Input from:
- Commercial surveyors
- Local agents
- Planning consultants
Can help identify location-specific issues that may not be immediately obvious from desk research alone.
What Comes Next
Once a suitable location has been identified, the next considerations focus on timing — both in terms of market conditions and business readiness.
This is addressed in the next section:
Choosing the Right Time to Buy a Commercial Property.
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