Real estate site selection can be a complex web of evaluating store attributes within a potential store business area. The process uses a science and an art to the overall selection process that combines a number of factors that weigh in on the feasibility of the location. What complicates the process is that each location has its own special attributes, making site selection more directional in nature rather than a cookie-cutter process. With that said, here are some key attributes to consider in the overall evaluation:

traffic counts – While these are clearly site-specific (think of the difference between a rural site and an urban site), analyzing traffic counts will help provide volume predictability. The key is to understand what the potential traffic patterns are for the site before one can look at traffic counts alone. If a road carries a number of cars, but that road doesn’t quite reach the site, traffic counts can be misinterpreted. Understand the natural flow to the site before evaluating traffic counts. One way to get some perspective on how traffic counts the volumes reflected is to compare the existing site’s volumes to their traffic counts. Many operators jump right into selecting new sites without looking at existing sites again and creating a model based on their geographic areas. This can give you a more reliable predictive model for your future sites.

population counts – The population count is the next logical indicator of your location. You not only want to see the population count as it is today, and if it is enough to support a site, but also how it has been trending. Positive growth indicates a viable market, while negative trends can raise a red flag. Additionally, gaining a better understanding of ethnic and socioeconomic trends in the area of ​​commerce will provide a better snapshot of the merchandising mix that should be featured on the site.

Seasonality and geographical nuances – Determining whether or not the site is seasonal should be taken into account in your analysis. Operators shouldn’t necessarily shy away from seasonal stores, but shouldn’t be surprised after they open. Closely related to seasonality would be a shopping area driver, ie a mall or theme park, which can positively or negatively affect the performance of your store. Following these external forces will strengthen your model. Also, look for non-seasonal improvements or barriers to your site. A river bisecting your business area, for example, will effectively cut off your traffic to the store no matter how close the houses are. Even certain companies can affect your site. A large manufacturing plant releasing a number of employees at the same time can cause traffic flow bottlenecks that will cause potential customers to avoid the area at these peak times.

visibility – This may be more anecdotal than the other attributes, but should still be a consideration. Judging whether the site is easily seen from afar rather than a site that is hidden by overgrown trees should be a factor. Driving the site from all four directions allows the owner to gain perspective on potential customers as they approach the location. Other considerations would include the speed of the traffic as it approaches the potential site. If the flow of traffic travels at too high a speed or if drivers are distracted by complicated traffic patterns, the opportunity to notice your location is diminished.

Competitors – Obviously, understanding the competition within the commercial area is essential. I would approach this competitive evaluation in a threefold way: a) gasoline, b) convenience stores, and c) quick service restaurants. Look at the competitive landscape in degrees of competition, which means that some competition has a greater negative impact than other competition. Ranking your competition based on this impact for all three categories will paint a more holistic picture. Keep in mind that some competitors may have an impact on gasoline only, while others may have a greater impact on sales of convenience products. With the convenience store industry moving further into food service, mapping quick service restaurants to the area of ​​commerce will give you a better indication of the viability of your food service operation.

To lease – Rent, rent, rent. There are many factors that come into play when choosing the best location. Is it a first curve? What part of the day street side is the site? Is there easy entry and exit in and out of the location? Are there divided highways in front of the location that make access difficult? Is this an interior lot location and not even a corner? What is the length of the front of the property? There are a host of considerations for the actual location of the site that need to be evaluated in the context of the other attributes.

Let’s be honest; there are a number of variables that come into play. While you can’t be sure that accurately representing all of these attributes in a real estate site evaluation model will guarantee success, it will at least put you in a better risk-averse position. That’s the science of it.

I’ve been around the block long enough to know that some stores just defy their science and just work. The art of site selection is much more difficult to quantify than the science. While those stores are the anomaly, evaluating new locations by putting their attributes to the litmus test above helps minimize the downside risk of opening an underperforming location.