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Location plays key role in establishing image

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Everyone’s heard by now that the three most important factors in real estate are “location, location, location.”
But area commercial real estate brokers say that rule of thumb only scratches the surface when location is intended to reflect a business’ image.

What’s in an address?
Sometimes, a business’ address gives
customers their first impressions of the company. “Location, location, location (means) a lot of different things: access, visibility, image and a host of other items depending on what a business or client is looking for,” said Tom Rankin of Rankin Co.
For instance, he said, the needs of a law office are different from those of an insurance agency.
“A law office would rarely be in a strip center because they want the more professional image that a larger office building could present, whereas an insurance agency would want the visibility that an attorney wouldn’t necessarily need,” he added.
The logistics of branding and creating an image are different for every business. For some, branding might involve finding a building with just the right aesthetics or just the proper tenant mix.
Branding also is dependent on which customers a business is trying to reach. For instance, a business with little walk-in traffic worries much less about accessibility but might have other concerns, such as impressing out-of-town clients or demonstrating their commitment to employee contentment to attract new recruits.
Such was the case with Dan and Shelley Langhofer of PaperWise, a commercial software company with clients worldwide.
“In the Springfield market we are challenged because we are competing with St. Louis, Kansas City and Denver in trying to hire the best that we can,” said Dan Langhofer, PaperWise president.
PaperWise specializes in document management software. When company growth required PaperWise to relocate, the Langhofers happened upon a building at 3171 E. Sunshine that reshaped the company’s image.
“We needed more room and found this building by chance. We were formerly at Woodhurst (Office Park) in a 5,000-square-foot building with 20 associates, and we were just on top of one another,” he said. “So the new building is really a function of continuing to grow our business, but it’s also a place we want our associates to call home. It has a racquetball court, a workout center, saunas. We have spent a good deal of effort on internal synergies with the new organization trying to consider our family of associates because
we spend a good deal of time together
at this facility.” PaperWise’s 31 employees’ new 20,000-square-foot home at Sunshine Street and Highway 65 is convenient to in-town employees and visiting business associates.
Location may also dictate how a business’ products are perceived in terms of price.
“Not all that happens in branding is upscale. Stores like Dollar General and Family Dollar have their own criteria. They don’t want to go into somewhere like Brentwood Center because even though some people might buy there, the customer that they are targeting probably wouldn’t think to look there. They want to be perceived as nice, but not fancy. That is their branding – that’s what they sell,” said Barbara Beyer, president of Beyer Commercial, Realtors. “The needs of your customer and who your customer is decides what you need to project and what your building needs to say when they walk in.”
And, Beyer noted, it’s not just retail businesses that need to think about conveying images and making branding statements with location.
“That carries over to the industrial market as well. A good example of that would be Executive Coachbuilders in Partnership Industrial Park West. It’s a very impressive building, lots of glass. This is a manufacturing plant (for) stretch limousines,” Beyer said. “One of the things David Bakare, who is the owner … found was important to him was that people, when they flew into Springfield, could see his building. It was important to him to move up into this building because his market is not just here, he flies people in to show them his operation and a lot of times they will fly in to see their car being made. It needed to be impressive because what he is selling is luxury – that’s his business.” Bakare, CEO of Executive Coachbuilders, added, “ Most of our clientele comes from out of state, most of them from New York and California. Generally, they expect us to be in the prime location of whatever city that we are in. And, obviously, we sell image and prestige.”
His location also can help to level the playing field with coast-to-coast competitors. “They also have nice, impressive buildings, plus they have the benefit of being (in) New York and California. I don’t have that, so I don’t want to put myself at any disadvantage because of looks. I try to level the playing field because it’s all image, what we sell, the image that comes with this product. People want to see that as soon as they walk in the building,” he said.
Doing proper demographic research determines where a business should go, but the building and surrounding area will largely determine what a business location will convey. Avoiding placement on a major thoroughfare can say as much about a business as a high traffic location. Beyer cited the example of Country Road Collections, a gallery at 1929 E. Bennett that specializes in hand-selected European antiques as well as decorative rarities from Asia.
Joe Jenkins, who owns the business with his wife Pat, said, “ When we go to Europe, we get on a train to get to a smaller train to get to an even smaller (train) or even a one car train hunting out places that no one else goes to buy things no one else has. We wanted our building to be kind of a discovery place for things that are unique to Springfield. A stand-alone location lends itself well to that kind of discovery.”
He added, “We realize that we appeal to maybe a minority of people, so it wasn’t necessary to be in someplace like a strip mall or the mall. It had to be easily accessible with a minimum amount of directions, but keeping it tucked away means that if you come see us, it’s because you really want to be there.”
Image is closely allied with business success, but impacts varying industries in different ways. In the retail market, shopping centers with large “box store” anchors can demand more rent, but tenants are paying for exposure from the accompanying traffic more so than the prestige such a center affords.
“As a rule, whether people are consciously saying to us, ‘I think image is important to me,’ image is always a factor in their decision. People will indicate to us that they would prefer some spots to other spots because of the image it creates,” said Ken Schwab, agent with Wilhoit Properties. He cited the appeal of developments such as French Quarter on Republic Road, which establishes the ambiance of a more intimate shopping district through a carefully selected tenant mix and exterior appeal.
Sheryl Parrish, owner of The Alley, chose French Quarter for her salon.
“Image was important to me when I was choosing my location because to put an upscale salon in an outdated center, that wouldn’t fit the image. The center I chose was a good fit because of the boutique feel and I think it gives the impression of more personalized shopping and personal service,” she said. “It has a great look and I think that intimate feeling puts people at ease.”

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