The numbers and the location can all work in your favor on a real estate or physical business location, but there is always more to consider. One of them is how neighborhoods can change, and sometimes too quickly for the landlord or owner to be able to adjust.
Another much overlooked part of research is analyzing for potential expenses and strategies for problems or obstacles which may arise. Some people do and some don't. For example, suppose the temperature is expected to drop below 40 degrees overnight. If it's me or my client or student, I'm looking at possible consequences of the temperature dropping to or below the freezing mark. Covering plants with plastic is an example of a solution. If temperatures do indeed stay above freezing, all I lost was a few minutes to cover the plants and part of a roll of plastic covering. However, if I do nothing and my plants freeze, I suffer from long term consequences of possibly having to replant and start over.
When it comes to commercial real estate, especially retail locations, building and personal security is an important aspect. That same analogy of freezing temperatures could apply to a changing local crime rate and/or an event which could trigger incidents which threaten the security of your property and your people. You can be over prepared, which has you ready in case things change, or you can wait and hope, only to potentially have your income seriously threatened.
The below linked story shows how a downtown area people think is safe has changed for the worst for businesses and their future. This situation is far from being only in isolated cities. Matters like this one could have a significant impact on real estate values in those areas.
However, when your research is limited to the property or opportunity and does not take into account factors like crime trends, population trends, and strategies of competitors, transactions and investments can turn sour. Clearly, what has happened in Portland is not the fault of property and business owners who are not suffering greatly.
There may be opportunities for investors to acquire properties for well below current market value and "hold" while security measures are taken over the next few years. Landlords and businesses prepared for this sad possibility may have already been able to do business from other and safer locations. Those who ignore the trends are the ones who are seriously stuck.
https://www.mainebiz.biz/article/portland-at-a-crossroads-downtown-safety-tensions-taking-a-toll-on-small-businesses-real
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