Site Selection Skills: Location Selection

As a variety of real estate investment, the purchase of shops has the dual characteristics of both renting and self-supporting, which has attracted the attention of investors.

However, it is not easy to buy a shop to make money. The choice of shops is very particular.

There are three kinds of shops in the area: the first is the mature central business circle; the second is the formed business district, and the neighbouring large residential areas or employment centers can attract a large number of commercial office buildings or economic development zones for the employed population; the third category is the interior of the residential district.

In the mature central business circle, the investment shops are large, and the nature and development level of different business circles will directly affect the operating efficiency and the rents of the shops.

Such shops

The first is to borrow the popularity of the entire business circle at close range. Moreover, there is a fixed flow of people to guarantee that it is good to enjoy the cool under the big tree.

Generally speaking, the employment center provides the demand market for residential areas, and the residential areas provide sufficient labor for the employment centers.

The rise of shops will start the two boom of housing and employment, especially the quality and price of new buildings will increase significantly, which in turn will increase the value of shops.

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In order to avoid the remote environment, the so-called "noise seeking and avoiding static" means choosing the location of the store according to the location of the store, choosing a crowded shopping area with frequent commercial activities.

The "business circle" is a circular consumption circle consisting of the location of the shop as the center and extending outward to a certain distance.

Traffic conditions, terrain and regional scenery, activity characteristics of customers' activities and customers' income are all factors that determine the good or bad business circle.

Business circles are generally divided into three categories: mature central business circles, formed business circles and community business circles.

The first category is the core business district of the city, whether it is the city or the outsiders. Generally, the formed business district is a regional commercial office building or development zone. The general customers who are shopping are young people who have a fast pace of life and chase fashion trends. The main consumers in the community business circle are consumers living around the community.

Business circles are subject to various constraints, and their shapes are often irregular. But theoretically, the three levels of the business structure can be represented by three concentric circles of different sizes.

The key is to determine the radius of each level.

Take the shops located in residential areas as an example. Generally, the radius of 500 meters is the main business area, the radius is 1000 meters for the sub business circle, the radius is 1500 meters for third business circles, and the walking time is 8, 15, 20 minutes (see table).

In addition, there are purchasing power outside the business circle, such as mobile purchasing power, special relationship purchasing power, etc., but the proportion is very small.

Of course, the above figures are empirical figures, and the implementation of each specific shop requires first-hand household survey data as the basis for revision.

Because there are different types of shops and different sizes of shops, the radius of business circles will vary greatly.