If you aspire to own a café someday, have a physical presence for your online boutique or are an investor looking for a commercial property to pump your money into, just remember one word: “location”.

It is the one critical factor that will help you attain success.

For instance, if you’re a retailer, open an outlet in a location that attracts the right pool of customers. This will help build your brand, increase your visibility and enhance your credibility.

If you’re an investor, the right location will attract quality tenants. This will ensure sustainable rental income, easier rental reversions and even better capital appreciation.

Here are five tips you should pay heed to…

1. Ambience

Visitors are attracted to places with a pleasant ambience.

Firstly, you’d be able to create a better impression with your customers.

Secondly, these features aim to create an atmosphere where visitors truly enjoy patronising.

Thirdly, it enhances productivity for you and your staff. Sometimes, a beautiful view or a stroll in the park is all it takes to recharge and have great inspiration for work.

2. Theme and tenant mix

The theme has an impact on the development’s tenant mix and the type of crowd that it will attract.

Find something which is complementary to your business. This allows you to leverage on each other’s brands and strengths to enhance the credibility of your business.

Today, there is a growing trend of neighbourhood lifestyle malls in the Klang Valley. Often, they have an appropriate mix of food and beverage, retail, leisure, and service-based establishments.

Presently, these malls have added conveniences to the communities surrounding them as they reduce the need for residents to visit major shopping malls located afar.

For example, you intend to set up a yoga studio where local residents can practise yoga. Consider a unit in a lifestyle mall located close to various matured townships.

This is because lifestyle malls are usually established as a meeting place to relax and to promote health and wholeness.

3. Parking space

In a congested area, finding a parking spot is time-consuming and unproductive. It results in traffic congestion and frustration as there are drivers who double-park or even triple-park.

Overall, it discourages potential visitors who place a premium on convenience. Understandably, this is unavoidable in matured commercial hubs developed years ago.

Presently, there are new projects with ample parking spaces. This is deliberate as developers envision the possibility of growing visitorship of its commercial area.

Parking spaces add value to both retailers and customers who now can enjoy convenience, while saving time, petrol.

4. Cleanliness

Isn’t this common sense? Regrettably, it’s not well-practised.

Some shopping malls have unbelievably filthy washrooms. It is a big turnoff to visitors. This is why successful shopping malls engage proper janitorial services to make sure their washrooms are always clean.

Often, cleanliness is the million-dollar difference that separates shopping malls that thrive from those that do not.

Pest control is necessary. If customers value cleanliness, they tend to avoid places situated close to a ‘Kedai Mamak’ or a ‘Kopitiam’ as these spots often do not have proper pest control nor do they keep their premises squeaky clean.

Hence, it is necessary to inspect all corners of the intended unit and its surroundings before agreeing to it.

5. Security

One area prone to crime are parking bays, especially if they are not well-lit and patrolled.

Fortunately, there are several initiatives undertaken presently to improve the security of commercial areas.

This includes installation of CCTVs, proper lighting, and security guards on buggies. They add value to both retailers and visitors as their personal safety and the safety of their belongings is somewhat assured.

What about units under construction?

Obviously, you’re unable to perform due diligence if a unit is still under construction. Somehow, there are advantages of purchasing a new unit directly from developers.

First, you get the first mover advantage to own a unit in the area. When the area becomes mature, you reap the most in regard to rental yield and capital appreciation.

Second, developers do provide promotional packages for first-hand buyers such as a waiver on legal fees for the SPA and loan agreement. This lowers transaction costs.

If you are buying a sub-sale unit, the purchaser has to bear his associated legal fees.

Although there is risk involved when a property is not completed, you can mitigate it by checking who the developer is and its track record.

Well-established developers with award-winning developments do carry some weight as they have years of invaluable experience in the property industry.

This article first appeared in kclau.com

KC Lau’s first book Top Money Tips for Malaysians has sold thousands of copies. He launched the first online personal finance course specifically designed for Malaysians, entitled the Money Automation System. He also co-founded many other online financial courses including the Bursa Method, Property Method, Founder Method and REIT Method.