Commercial real estate may be all about “location, location, location,” but a successful business doesn’t depend solely on its location or the location of the business next door. Success also can depend on what businesses are down the block, around the corner and on the way to your business.
People are creatures of habit, and convenience is a factor in where they eat, shop, work and play. Do you drive miles out of your way to go to the grocery store? How often do you pick up dinner on your way home from work? Businesses depend on one another, which is why co-tenancy is a big deal for a shopping center, but businesses in a wider radius also benefit from what I call the “economic halo effect.”
Take Primrose, for example. Every weekday, more than 100 parents make two visits to their Primrose school to drop off and pick up their kids. That’s more than 1,000 weekly visits guaranteed to the areas where each high-quality preschool is located.
Having a Primrose neighboring your business or as part of your real estate development not only helps your bottom line, but the bottom line of many surrounding businesses. Want to see a good example of this halo effect? Here’s what a typical week looks like for Primrose parents Michael and Susan, whose 3-year old son is enrolled at Primrose School of Macland Pointe.
Monday: To jump-start her work week, Susan stops by the local coffee shop after dropping off their son at Primrose. She goes there so often that they know her usual order. In the evening, Michael picks up their son along with a quick dinner from the Mexican restaurant around the corner.
Tuesday: Susan is off work for the day and starts her morning at the new fitness center that opened next to their Primrose school. In the evening, Michael is on pick-up duty, and as a surprise for his wife, he picks up flowers at the grocery store located behind the school.
Wednesday: Wednesdays are when the four-legged member of the family gets dropped off at doggie day care, and thankfully, one just opened up right down the street from their Primrose school, making it easy for Susan and Michael to pick up their dog and son in the same trip.
Thursday: Susan doesn’t have to worry about their son’s lunch because of Primrose Balanced Menus, but she does need to pick up lunch for herself, which is why she stops at the grocery store’s deli counter after dropping off their son in the morning. She also picks up a prescription from the pharmacy across the street.
Friday: Susan leaves from Primrose to drop off her dry cleaning around the block. The family then celebrates the end of a long week by meeting up at their favorite burger joint near the school for dinner and enjoying a family meal out.
In just one week, a typical Primrose family could spend hundreds of dollars at the businesses surrounding their Primrose school. And that adds up over the course of a year.