{"id":1004489677,"date":"2020-11-25T12:38:27","date_gmt":"2020-11-25T20:38:27","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004489677"},"modified":"2020-11-25T12:38:27","modified_gmt":"2020-11-25T20:38:27","slug":"location-liquidity-luck-a-modern-precept-in-cre","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/location-liquidity-luck-a-modern-precept-in-cre\/","title":{"rendered":"Location, Liquidity, Luck: A Modern Precept in CRE"},"content":{"rendered":"
\"\"<\/a>

Andy Hochberg<\/p><\/div>\n

For decades, the age-old precept in commercial real estate has been based on location. To reinforce its importance on the viability of a property, the word was repeated three times. \u201cLocation, Location, Location\u201d became the adage everyone recited.<\/p>\n

Billions of dollars in real estate and related decisions were made, by tenants, developers, and investors, based on the premise that success was a foregone conclusion with a AAA-rated location.<\/p>\n

That premise held true for decades. Then, more than 10 years ago we began seriously reevaluating the merits of that premise and its ability to withstand the financial implications of the Great Recession and the economic hardship that ensued. Today the questioning of the premise is further warranted as health and economic crises once again, change the shape of the commercial real estate landscape.<\/p>\n

With these events, we suggest amending the time-honored formula for success to reflect our current environment. \u201cLocation, Location, Location\u201d should give way, at least for the foreseeable future, to our adage: \u201cLocation, Liquidity, Luck\u00ae.\u201d<\/p>\n

Location<\/h1>\n

Location is, and likely will remain, one of the basic and most critical fundamentals of real estate. Current economic conditions won\u2019t change that. In our industry, all parties covet and protect their best locations, regardless of asset type.<\/p>\n

However, in this day, you can no longer rely on the \u201cbuild it and they will come\u201d philosophy, regardless of location. A \u201cMain and Main\u201d site isn\u2019t mandatory, but an appealing location in the center of the right demographics or in the path of progress, attracts developers and investors. More importantly, a well-located, appropriately designed retail center attracts merchants. A strong retail tenant roster brings in the consumer. For other property types, a strategically located, well-designed industrial facility or office property attracts and helps retain tenants to sustain competitive and profitable property operations.<\/p>\n

Key questions to be answered when selecting a commercial site include:<\/p>\n