April 19, 2023 | Buying

Buying a Business in Toronto? Here’s Why You Should Pay Attention to Foot Traffic

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Known for its bustling streets, vibrant neighbourhoods, and diverse mix of cultures, Toronto offers no shortage of opportunities for entrepreneurs. 

However, given the city’s sheer size, navigating its vast commercial real estate market can be challenging – especially when it comes to choosing the right location for your business.

That’s why entrepreneurs who are looking to buy a business should be especially mindful of foot traffic. 

Whether you’re looking to attract locals, tourists, other passers-by, or all of the above, maximizing your base of potential customers starts with identifying where they are. 

Buying your first business? Click here to learn what you can expect from the process

Location as the Cornerstone of Your Business

From a business planning perspective, it’s hard to overstate the impact that location will have on your everyday operations and long-term success. With that in mind, if you’re looking to buy commercial real estate, you’ll want to pay close attention to foot traffic. 

Toronto is unique in that many residents here don’t own a personal vehicle. Instead, lots of people rely on walking, cycling, or public transit for getting around. As a result, entrepreneurs who are looking to buy a business should strongly consider centring their search around pedestrian-friendly areas. 

Catching the Eye of Your Customers

Even if your business doesn’t operate on a walk-in model, opening up shop in an area with strong foot traffic can do wonders for visibility and brand awareness. On top of this, it can also help you build a stronger connection with the surrounding community – which can contribute to a more fulfilling experience as an owner and operator. 

Gearing up to buy a business in Toronto? Explore these introductory resources ahead of your purchase. 

Targeting Locals & Tourists

As a bustling metropolitan area, one of the characteristics that make Toronto specifically advantageous for entrepreneurs is the volume and variety of customers. Not only is the city constantly expanding with more residents each year, but it’s also an immensely popular destination for tourists – welcoming north of 25 million visitors each year on average. As you might expect, these tourists have a massive impact on local businesses. 

If you’re looking to purchase a business in Toronto, understanding the consumer behaviours of not only local customers but also tourists can be extremely insightful in making a wise investment. 

Looking for a sense of what’s available on the market? Click here to explore our listings of available businesses

The Cost of High-Demand Real Estate

While purchasing a business in an area with high pedestrian traffic has its advantages, there are potential drawbacks to consider. For instance, a neighbourhood that’s particularly popular with walkers or tourists could see increased competition between businesses. Depending on your vision, it may be challenging to identify a high-quality opportunity in areas that are already somewhat saturated. 

In addition to high competition, when a certain district is popular with pedestrians, there tends to be a high demand for commercial real estate. This elevated interest among entrepreneurs can lead to higher costs. 

New to the world of commercial real estate? Explore these introductory resources to build up your knowledge base. 

Partnering With an Expert

Geographically speaking, Toronto is a massive place. While there are a number of high-density pedestrian-centric pockets scattered throughout the city, not every area will be well-suited to your goals and vision. 

If you’re planning to purchase a business, you’ll want to partner with a leading commercial real estate specialist. At Northern Hospitality, we’re here to help you navigate the market and ensure you enter it as a confident, prepared buyer.

Whatever your business dream may be, finding the right place to bring it to life is an essential step in your long-term success. Luckily we’ve got the industry presence, know-how, and network to help you do just that.   

After narrowing down your search, we’ll take care of the due diligence to ensure you’re making a strategic, low-risk investment. Next, we’ll craft an informed buying strategy on your behalf, allowing you to stand out in a competitive market.

Ready to head to the market? Northern Hospitality is here to help. Send us an email or call 647-280-4404 to get started.