2B — October 26 - November 8, 2012 — Shopping Centers — Mid Atlantic Real Estate Journal
www.marejournal.com
RELY ON ROCK
S HOPPING C ENTERS
ow traffic counts and location affect business and con- By John Birkeland, ROCK Commercial Real Estate Make traffic work for your business H this business based on an impulse.
ternoon rush hour. I recall not too long ago I was out looking at a site with a representative of a retail chain, and he liked everything - the location, the traffic counts, the visibility, the accessibility - but it was “on the wrong side of the road.” That prospect, like John Barleycorn must, die. In conclusion, if you search, you will findAADTs. and how relevant the volume and di- rection of traffic are to a busi- ness depends on the business, of course. The uniqueness and availability of the service / product and how it is pur- chased need to be considered. Even which side of the road a site is located can be impor- tant. Paying a premium to be on the site with the AADTs may be essential for a busi- ness. However if AADTs are not driving a business, then the percentage you’re pay- ing is too high priced while you’re living beyond all your means. Know your market. John Birkeland special- izes in retail leasing and sales, investment proper- ties, and corporate ser- vices. He has been active in commercial real estate for the past nine years, and held the position of Broker of Record for Springwood Commercial Realty. He has a strong background in hotel and restaurant properties, and earned a master de- gree in Management from the Cornell University Hotel School. John is a native of Colo- rado, where he specialized in resort management and commercial leasing before moving to York County in 2003. ■
Conversely, if a business sells a product such as fur- niture, then the customer will travel to that business. I know friends that whimsi- cally decide to pop in and buy a cappuccino or cruller on a weekly basis. I don’t hear stories of friends that were driving by IKEA and sponta- neously stopped and bought a dresser. Destination businesses need central locations, but they do not need to pay to be on the main thoroughfare with high AADTs. Another point to consider when looking at traffic counts is competition and the irre- placeability of the product. If a product or service is limited in availability and irreplaceable, then that busi- ness becomes a destination and consumers will drive to find it. On the other hand, if the product or service is easily substituted and ubiquitous, then AADTs become more important, as well as acces- sibility and visibility. The final piece to consider is traffic flow. AADT’s tell us the average daily number of vehicles, but does not indicate when those vehicles pass by each day. Quite often the traf- fic is heavy in one direction in the morning and heavy in the other in the afternoon. Consider the main routes into a central business dis- trict. A business specializing in coffee and bagels would need to be on the side of the road with the morning vol- ume coming to work. A wine store with a DVD rental kiosk would be better served on the side of the road with the af-
sumer deci- sions. Steve W i n w o o d . Dave Mason. Jim Capaldi. Chris Wood. L e t ’ s t a l k traffic. Dear Mr. Fantasy, write me a blog.
The Power of Team . For in-depth market research . For fast service that saves time and money . For timely and accurate information . For a unique team-based approach to commercial real estate
John Birkeland
ROCK Commercial Real Estate, LLC, Susquehanna Commerce Center West 221 West Philadelphia St. Suite 19,York, PA 17401-2992 717-854-5357 Fax: 717-854-5367 www.rockrealestate.net
The availability of traffic count information is amazing. Whether through the depart- ment of transportation or a private third party company, this valuable data is gener- ally out there. The volume and direction of traffic can mean the difference between success and failure for a busi- ness. The Average Annual Daily Traffic (AADT) counts can make a site feasible to use for a commercial concept, or the lack of AADTs may render a great site with visibility and accessibility infeasible. How- ever, some businesses pay little mind to theAADT num- bers of a potential location. What is the difference? You knew it was coming – it depends. It depends on how consumers buy the product the business is selling. More succinctly, is the product a destination or impulse pur- chase? It also depends on how replaceable a given product or service is. Businesses that sell a prod- uct that is purchased to satisfy an immediate want need high AADTs. Think Starbucks, Dunkin’ Donuts, or CVS. Al- though some customers may initiate a journey with these destinations specifically in mind, quite often they visit
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