Why Location Is Everything in Commercial Real Estate: Site Selection Tips for Office, Retail, and Industrial Properties
In commercial real estate, location isn’t just a buzzword—it’s a strategy. Whether you’re selecting a space for your business or evaluating an investment property, where you land on the map can determine your success or setbacks. We sat down with Tony Salerno, Vice President at NAI DESCO, to unpack the real meaning behind “location, location, location”—and how smart site selection can make or break a deal in the St. Louis commercial real estate market.
What’s One Thing Clients Often Overlook When Choosing a Location?
Zoning regulations and future land use plans. “Some buyers focus on a property’s current features and location but fail to dig into how the area is expected to change,” Tony explains. “That can be a costly mistake.” When evaluating a commercial real estate location, it’s essential to understand what’s allowed now—and what’s planned in the future. Zoning and land use changes can affect how the property functions, its resale potential, and its long-term value.
A Real-World Reminder: Location Can Make or Break a Deal
While every property has its own story, Tony shared that some of the most successful (and unsuccessful) deals he’s seen had one common thread: the surrounding environment. Accessibility, visibility, nearby businesses, and community development plans all shape a property’s value. In some cases, overlooking these factors led to major challenges down the road—even if the building itself checked all the boxes. Retail vs. Office vs. Industrial: What Matters Most in Site Selection? Each asset type comes with its own location priorities:
- Retail: Needs high foot traffic, strong storefront visibility, and easy customer parking. These properties often succeed in or near residential zones.
- Office: Focuses on business operations—look for professional hubs, access to amenities, and employee convenience.
- Industrial: All about logistics. Ideal sites are close to interstates, rail lines, or ports, with plenty of space for distribution, storage, and loading areas.
Tony notes, “Even being just a few miles off the mark can drastically affect foot traffic, logistics costs, or operational efficiency.”
What’s Influencing Site Selection in St. Louis Right Now?
Current St. Louis commercial property trends include:
- Demand for locations near anchor employers like hospitals, universities, and corporate campuses.
- Increased interest in areas with ongoing infrastructure investment.
- Businesses seeking municipalities with pro-business environments, favorable tax structures, and low vacancy rates.
Final Advice: Look at the Bigger Picture
“If I had to give just one piece of advice,” Tony says, “it’s to consider the economic health of the area. Low vacancy usually means strong demand. Look for anchor tenants and active investment from the city.” He also encourages prospective tenants and investors to speak directly with the local municipality about long-term plans. A quick conversation could uncover major opportunities—or help avoid a costly misstep.
Ready to Choose the Right Location?
At NAI DESCO, we guide clients through every step of the site selection process, with deep market knowledge and a data-driven approach to matching your business with the right place to thrive.
Learn more about our tenant and buyer representation services.