Unlocking the Value: Signalized Intersections for Retail Business

Investing in commercial property for retail business requires a thorough analysis of various factors that contribute to its value and potential for success. While tangible attributes such as rental income and operating expenses are crucial, intangible factors like visibility, accessibility, and parking play an equally significant role in determining the viability of a commercial real estate (CRE) investment.

Among these intangible factors, the presence of a signalized intersections near  commercial property can greatly influence its attractiveness to potential buyers or tenants. This piece will explore the importance of signalized intersections in enhancing the accessibility and visibility of commercial properties and how they impact property valuation in the real estate market.

The Role of Signalized Intersections in Accessibility and Visibility

Signalized intersections play a crucial role in enhancing the accessibility and visibility of commercial real estate. These intersections contribute to better traffic flow, making it easier for potential customers to enter and exit the property. Here are some key ways signalized intersections impact accessibility and visibility:

1. Improved Traffic Flow

   • Signalized intersections regulate traffic, creating a more orderly flow of vehicles.

   • Dedicated turn lanes with arrow traffic signals further enhance ingress and egress.

   • Multiple entrances and exits at signalized intersections improve overall accessibility.

2. Increased Visibility

   • Properties with frontage along major roads and signalized intersections have higher visibility. In retail applications, well-placed traffic signals have the ability to encourage consumers to give specific locations extra attention

   • Unobstructed views and well-maintained landscaping contribute to better visibility.

   • Ample signage placed in highly visible locations alerts potential visitors to the property's presence.

Factors Influencing Visibility

Road Frontage - Properties with direct frontage on multiple sides of the road are more visible.

Signage - Well-placed signage in high visibility locations attracts potential customers.

Landscaping - Neatly trimmed trees and shrubs should not block store entrances or signage.

Traffic Counts - High traffic counts of both cars and pedestrians contribute to a property's visibility.

Properties located at signalized intersections, particularly those with hard corners (two sides of road frontage), tend to draw in more customers due to their ease of access and high visibility. Investing in commercial property in Florida with these attributes can lead to greater profits and quicker property turnover.

Signalized Intersections as a Factor in Property Valuation

The presence of signalized intersections near a heavily traveled intersection can significantly impact its valuation. Properties located at these intersections, especially those with "hard corners" (frontage on two sides of the road), tend to experience higher business flow and exposure, making them more attractive to potential buyers or retail businesses.

Parking Considerations

Ample parking is a crucial factor in determining the value of a commercial property. The parking ratio, measured as the number of spaces per 1,000 square feet of leasable space, should ideally be between 3 and 5. Additionally, parking areas and structures must comply with ADA requirements for handicapped spaces:

Parking Ratio - 3-5 spaces per 1,000 sq. ft. of leasable space

ADA Compliance -Required number of handicapped spaces

Accessibility - Multiple entry and exit points

Accessibility and Road Frontage

Commercial properties with easy access, typically featuring multiple entry and exit points, are more desirable to businesses. Hard corners, which offer road frontage on two sides, are considered the cornerstone of a great commercial real estate project:

1. Multiple entry and exit points enhance accessibility

2. Hard corners provide increased visibility and exposure

3. Road frontage on two sides is highly desirable

Investing in commercial property located at signalized hard corners can lead to higher property values, increased business exposure, and a more attractive proposition for retail business. By considering factors such as parking, accessibility, and road frontage, investors can make informed decisions when evaluating the potential of a commercial real estate.