COMMERCIAL REAL ESTATE
Why Site Selection Matters to Commercial Real Estate Developers
Published Feb 1, 2026 · 8–10 minute read
For commercial real estate (CRE) developers, site selection isn’t just a “where.” It’s the foundation for approvals, underwriting, leasing, and long-term asset performance.
CRE development is an approval + leasing business
A great site makes everything easier: entitlement conversations, stakeholder alignment, tenant interest, and investor confidence. A weak site creates friction everywhere: public pushback, uncertain demand, and slower leasing velocity. That’s why site selection for commercial real estate development should be defensible, documented, and repeatable.
What “defensible” site selection means for developers
Defensible site selection uses location intelligence to clearly explain: (1) what demand exists, (2) what risks exist, (3) which assumptions drive the pro forma, and (4) what would change the recommendation.
Five ways location intelligence helps commercial real estate developers
- Stronger underwriting: validate demand drivers, customer profiles, and trade area assumptions.
- Faster approvals: address traffic, access, and compatibility with evidence—not opinions.
- Better tenant targeting: align site characteristics with tenant leasing criteria (access, visibility, adjacency, footfall).
- Reduced entitlement risk: identify constraints early (ROW, utilities, stormwater, zoning, community sentiment).
- Improved leasing velocity: a clear story sells the site to tenants, brokers, and capital partners.
What to analyze for CRE site selection
- Access and visibility: turning movements, signalization, ingress/egress, corner influence, signage visibility.
- Trip drivers: daytime population, retail nodes, employment centers, anchors, schools, and medical corridors.
- Demand and segmentation: who lives/works nearby and what they actually buy.
- Competing supply: nea