Choosing the Right Commercial Site: 5 Key Factors to Consider Before You Build

Selecting the right site for your commercial construction project is one of the most critical decisions you’ll make. The wrong location can lead to unexpected costs, zoning restrictions, infrastructure limitations, and long-term business challenges.

At Construction, Design, and Management (CDM), we’ve helped businesses, developers, and property owners assess potential sites, ensuring they make smart, informed decisions before committing to a location.

Here are the top five factors to consider when choosing a site for your commercial development, office, retail, medical, industrial, or mixed-use project.

1. Zoning, Permits & Land Use Regulations

Not all land is suitable for your intended use, and zoning laws dictate what can and cannot be built.

📌 What to Check:
✔ Current Zoning Designation: Does the site allow for your type of business (commercial, industrial, mixed-use, retail, medical, etc.)?
✔ Rezoning or Variances Needed: Will you need a zoning change or variance to proceed? If so, expect long approval processes.
✔ Setbacks & Height Restrictions: Are there limitations on building height, setbacks, or lot coverage that could impact design?
✔ Environmental & Land Use Restrictions: Are there wetlands, protected areas, or historic site limitations?

⚠ Potential Issue: Many business owners purchase land first, only to discover later that rezoning is required—adding months of delays and legal hurdles.

✔ CDM’s Approach: We conduct preliminary zoning and permit research before construction begins, working with local municipalities and real estate professionals to streamline approvals.

2. Site Accessibility & Traffic Flow

Your site’s visibility, ease of access, and traffic patterns directly impact the success of your business and tenant appeal.

📌 Key Considerations:
✔ Traffic Volume & Patterns: Is the location easily accessible for customers, employees, and deliveries?
✔ Parking Availability: Will there be sufficient parking, or will you need to add more?
✔ Ingress & Egress: Are there convenient entry and exit points for vehicles and pedestrians?
✔ Public Transportation & Walkability: For office and retail developments, proximity to bus lines, rail stations, and pedestrian-friendly infrastructure is a key factor.

⚠ Potential Issue: Sites on high-traffic roads without proper turn lanes or visibility can lead to safety concerns and difficulty attracting customers.

✔ CDM’s Approach: We work alongside site planners, civil engineers, and traffic consultants to evaluate accessibility and suggest improvements before land acquisition.

3. Utilities, Infrastructure & Site Conditions

Your site must be build-ready—meaning it has proper water, sewer, electrical, and gas service available. If not, expect unexpected costs.

📌 Infrastructure & Utility Checklist:
✔ Water & Sewer Access: Are public water and sewer lines available, or will you need to install a septic system or private well?
✔ Electrical & Gas Availability: Can the local power grid handle your business’s energy needs?
✔ Internet & Telecommunications: Does the site support high-speed fiber or broadband connectivity for office or industrial needs?
✔ Soil & Ground Conditions: Conduct geotechnical testing to check for poor soil conditions, underground rock formations, or contamination.

⚠ Potential Issue: A seemingly "affordable" piece of land can turn into a money pit if you must extend water, sewer, or electrical service hundreds of feet from the nearest connection point.

✔ CDM’s Approach: We assist in site feasibility studies, coordinating with local utility providers and geotechnical experts to assess infrastructure readiness before purchase.

4. Environmental & Drainage Concerns

Ignoring environmental considerations can lead to expensive remediation, permitting hurdles, and legal compliance issues.

📌 Key Environmental Factors to Evaluate:
✔ Flood Zones & Drainage Issues: Is the site prone to flooding, poor drainage, or water table issues that could impact foundation work?
✔ Soil Contamination: Was the land previously used for industrial, chemical, or fuel storage operations? If so, soil remediation may be required.
✔ Stormwater Management: Can the site handle storm runoff, or will retention ponds, drainage systems, or grading work be needed?
✔ Wetlands & Protected Areas: Are there any state or federally protected environmental areas nearby that could limit development?

⚠ Potential Issue: A site that seems perfect on paper may require extensive land remediation, grading, or stormwater drainage improvements, adding thousands to the budget.

✔ CDM’s Approach: We coordinate environmental assessments early in the process, ensuring the site meets all EPA and local environmental regulations before construction begins.

5. Future Expansion & Market Demand

Your site needs to support long-term business growth and changing market conditions.

📌 Key Questions to Ask:
✔ Is There Room for Expansion? If your business or tenant demand grows, can you expand the building footprint or add parking?
✔ How Is the Surrounding Market Evolving? Is the area growing, declining, or at risk of economic downturns?
✔ Will Nearby Development Impact Property Value? Are there upcoming competing developments that could affect demand for your space?
✔ Is the Site’s Location a Good Investment? Does it offer strong resale value or lease potential in case you decide to sell or rent?

⚠ Potential Issue: A site that meets current needs but lacks expansion opportunities could force businesses to relocate sooner than expected.

✔ CDM’s Approach: We evaluate long-term development potential, helping clients align site selection with future business growth.

Why CDM Should Be Involved in Your Site Selection Process

At CDM, we don’t just build structures—we help clients make informed, strategic decisions from the start. That’s why we:

✅ Collaborate with real estate professionals to provide construction insights during site selection.
✅ Participate in site walkthroughs to identify potential infrastructure, zoning, and constructability issues.
✅ Conduct feasibility studies to ensure the land supports your project’s long-term success.
✅ Work with engineers and architects to design the most cost-effective, efficient use of your site.

📞 Looking for the perfect site for your next project? Contact CDM today for expert site selection guidance and construction planning.