Why Location Matters More Than You Think for Business Premises

When it comes to choosing commercial premises, many businesses focus first on rental costs, fit-out potential, or available space. While these factors matter, location is often the single most influential element in the long-term success of your business. Whether you’re entering a new commercial lease, expanding into a second site, or relocating your entire operation, the address you choose can affect everything from customer traffic to staffing, logistics, and overall profitability.

Here’s why location should be at the top of your priority list when evaluating modern commercial leases.

For customer-facing businesses, location can determine visibility, walk-ins, and the likelihood of repeat business. A great product won’t help if customers can’t easily find you or if parking is impossible.

The best locations offer:

• Strong foot or vehicle traffic

• Easy access from main roads

• Clear signage opportunities

• Convenient on-site or nearby parking

Even businesses that rely less on walk-ins benefit from being in a recognisable, easy-to-reach spot.

Your team is one of your biggest assets, and their wellbeing directly affects productivity and retention. A location that is difficult to reach, far from public transport, or short on parking can lead to frustration, lateness, higher turnover, and difficulty attracting new talent.

When comparing commercial leases, consider:

• Public transport availability

• On-site parking or affordable nearby options

• Commute times for your existing staff

• Safety and lighting for early morning or late-night operations

Happy staff stay longer, and the right location plays a major role in that.

For industrial, warehouse, or service-based businesses, location can make or break your efficiency. Being too far from suppliers, customers, or major transport routes increases fuel costs, delays deliveries, and disrupts scheduling.

Ideal locations for operational businesses include:

• Proximity to major highways and distribution routes

• Easy truck access

• Wide driveways and turning circles

• Being close to key suppliers or client hubs

The closer you are to where your business operates, the smoother your logistics will be.

Your address becomes a part of your brand story. Commercial premises in a well-regarded or high-traffic area add credibility, professionalism, and confidence for both customers and partners.

Think about the impression created by being located in:

• A modern business park

• A central commercial district

• A reputable retail strip

• A busy industrial estate

Your location signals who you are as a business, and clients often make assumptions based on where you're based.

While rent is a large component, the true cost of a commercial lease also includes:

• Outgoings

• Utilities

• Parking fees

• Transport and delivery costs

• Staff commuting expenses

A location with slightly higher rent but excellent accessibility might end up cheaper in the long run than a cheaper premises that slows operations or burdens staff.

If your business depends on a specific type of customer, location becomes even more critical. Look at the demographic profile surrounding each potential site and ask whether it aligns with your target audience.

For example:

• Cafés thrive near busy office districts

• Allied health practices benefit from family-oriented suburbs

• Retail stores succeed where foot traffic matches their niche

• Service businesses grow near commercial or industrial precincts

Location should match the habits and behaviours of the customers you want to reach.

Most businesses worry about being too close to competitors, but in many industries, proximity can actually increase market share. Food strips, shopping centres, and trade precincts perform well because customers naturally visit these areas when shopping for certain services or products.

Before deciding, analyse your competitors' locations to understand why they chose those areas and whether being nearby would benefit you or hinder you.

A good location today should remain a good location in the future. Before signing a commercial lease, investigate:

• Planned roadworks

• New developments

• Zoning changes

• Redevelopment proposals

• Infrastructure upgrades

Future noise, construction, or traffic changes can impact your business, either positively or negatively.

Some locations come with strict zoning or usage restrictions, while others allow greater flexibility for future expansion or changes in business operations.

Ask questions like:

• Can you add signage?

• Are you allowed to run certain types of equipment?

• Can you modify the fit-out?

• Are there restrictions on trading hours?

Location and council regulations often dictate what your business can and cannot do within the space.

Location is more than an address. It’s a strategic business decision. It affects customers, staff, logistics, brand visibility, costs, and long-term growth.

The right location can set your business up for success. The wrong one can limit your potential before you even open the doors.