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Four Ways Transportation Affects Commercial Site Selection

Posted by Hani Khoury | Dec 09, 2022 | 0 Comments

The methods of and routes for transportation both make a tremendous difference when selecting new commercial real estate sites to lease for a range of business purposes. Because the properties chosen for industries like hotel, shopping, and wholesale should be accessible for employees and consumers alike, always invest in places in proximity to highways, public transportation, and other transportation opportunities.

Consider the following four ways that transportation can affect site selection in commercial real estate. Ensure that you cover all your bases and make even better financial decisions.

  1. Convenience of Transportation. Level of convenience is one way transportation plays a part in site selection for commercial real estate, as any type of retail location should be established within short distances from airports, mass transportation, and residential communities. This emphasis on short commutes, especially ones with limited traffic, ensures that your location goes hand in hand with simple modes of transportation to help businesses appeal to more customers.
  2. Accessibility of Transportation. Degree of accessibility is a second way transportation makes a difference in site selection for commercial real estate, as retail locations also need to be available to potential employees and customers traveling both publicly and privately. This consideration for consumers who either require a place to park their cars or a way to take advantage of local trains, buses, and taxis leads to location and transportation opportunities working together to cater to your tenants and the public.
  3. Cost of Transportation. Decrease in cost is a third way transportation affects site selection for commercial real estate, as industrial warehouses should be in proximity to where the raw materials are coming from and where the finished products are going. This focus on both the inbound and outbound sides of a business takes location and transportation expenses into account as strategies to reduce the mileage and subsequent expenses associated with receiving goods at and transporting them to local businesses. 
  4. Duration of Transportation. Estimated duration is a fourth way transportation influences site selection for commercial real estate, as industrial warehouses also need to be a short distance from other manufacturers and retailers whether coming by road, rail, air, or water. This attention to how long it takes to receive and send orders for a business relies on a combination of location and travel time to gauge the fluidity of local infrastructure and timeliness when sending and receiving goods.

These four ways that transportation affects site selection in commercial real estate are important factors to consider when looking at your investments from every angle and executing smart financial moves. Given that locations near freeways, mass transit, and the like are more lucrative in the long run, ensure that commuters have easy access to all of your properties.

These considerations are important to keep in mind when thinking about any type of real estate opportunity, so contact me today for more information about travel methods and routes when choosing all retail and industrial locations.

About the Author

Hani Khoury

HANI KHOURY is a partner and founding member of the law firm of Awad & Khoury, LLP. He is a graduate of Colgate University and New York Law School. He was admitted to the bars of New Jersey and New York in 1992 and 1993 respectively. Mr. Khoury is always ready to tackle heavily involved cases in ...


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