How Real Estate Locations Impact Corporate Strategy
Whether a small retail storefront or a large distribution center, a company’s real estate location can have a massive impact on its strategy and success. Poor location strategy can and will lead to years of negative implications for a corporation. We frequently work with companies that have selected positions that have had long-term consequences for their business. Poor real estate location selection can contribute to millions of dollars lost due to loss of talent, loss of customers, increased logistics costs, etc.
At The Reichle Klein Group, we emphasize the thoughtful positioning of your business. We are more than just a real estate brokerage; we are property and location problem solvers. It’s our job to intimately understand your business needs, the local area, consumer preferences, and how the landscape of the area is expected to change in the coming years.
Making good location decisions will have an ongoing impact on your corporation’s success. Therefore, when you work with real estate brokers near you who work in commercial real estate in Toledo, Ohio, you must have the confidence they consider the significant location factors that impact your corporation’s strategy. Here are the seven main variables that must be considered when finding commercial real estate in Toledo, Ohio, which will impact corporate strategy.
1. Human Resources
You may be surprised, but it is essential to consider where staff members live and how far they are willing to travel. Yes, an industrial site on the city’s outskirts will have a lower rental rate. However, the distance that current employees need to travel to accommodate that move could cause them to seek alternative employment. You’ll also need to weigh the cost of replacing any staff that isn’t willing to travel further to work.
Your workforce is the lifeblood of your company. But, depending on the role, it can take years of experience and training to replace high-quality employees.
Cost
Whether you’re looking for retail, industrial, office, or any other kind of commercial real estate in Toledo, Ohio, the cost of your rent will be a significant consideration. Not all businesses can afford the prime location. In these instances, we help our clients weigh their top priorities and negotiate to find the best option to suit their requirements.
Nearby Businesses
Depending on your corporation’s businesses, proximity to suppliers or anchor retailers may factor into your real estate location decision. Having a network of businesses that complement your own within easy access can save time and draw customers. For example, a boutique clothing retail store should position itself amongst other retailers, while a corporate law firm should secure office space near its major clients.
With the continual disruptions in the supply chain in recent years, manufacturers have become increasingly conscious about finding a location close to suppliers, partners, and distributor’s to save time and money. Logistics are a considerable cost for most businesses which can be greatly minimized based on location selection. Surprisingly, it can be cost-effective and time advantageous to pay a higher rent to save on daily logistics and supply costs.
The Reichle Klein Group will help you weigh up the pros and cons of each option we view with you and adjust the properties we present based on the feedback provided.
Incentives
Developers and cities bidding to draw industry and major tenants often have incentives on offer that can alleviate rental costs and help corporations secure the ideal location. We investigate grants and stimulus options offered by up-and-coming areas as well as developer incentives.
Building
Just because a site positioning is ideal doesn’t necessarily mean that the building is best for a business’ requirements. However, with a vision only possible with years of experience and leveraging strong relationships with developers and landlords, modifications are possible. Sometimes we must look at buildings creatively. Companies must remember that a building can be adjusted to suit a corporation’s needs where possible and with the right lease structure negotiated.
Accessibility
Access can become an issue for employees, customers, suppliers, and key stakeholders in a business. For example, an office with a large employee base that utilizes public transportation will want to make sure that it’s easily available. Alternatively, a warehouse supplied by large trucks will need semi-truck turning circle capacity and on-site employee parking.
Accessibility also needs to be considered beyond current business needs but also entering new markets and drawing new skilled talent.
Future Growth and Change in Corporate Strategy
A business’ requirements today may not be the same in a year or two. Growth plans and corporate strategy must go hand in hand with location selection. Perhaps your corporation’s current location is no longer best serving your strategy. When sourcing locations and negotiating lease terms for commercial real estate in Toledo, Ohio, The Reichle Klein Group aims to take your business aspirations into account to find a site that best compliment’s your corporate strategy.
With the changes in consumer behavior, the supply chain, and remote work, building requirements across most sectors are quickly changing.
When finding a local broker near you, it’s crucial to find a team that acts as your partner and advocates for your corporation. A location isn’t just a place to house your staff or sell goods. It will impact almost every aspect of a business’s day-to-day activities and its bottom line.
You need access to updated micro-market knowledge, upcoming infrastructure changes, new developments, and an experienced negotiator to make thoughtful location selection decisions. The Reichle Klein Group specializes in retail, industrial, and office space and has the expertise to help you find your next location or lease a property that you own.
