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What every retailer should know when choosing a new location to build

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Retailers can spend years refining the layout, branding, and building specifications of their stores — but the success of a new location often hinges on what’s underneath and around a familiar footprint.

Even with a standardized building design, no two development sites are the same. Variables like topography, zoning restrictions, stormwater requirements, soils conditions and/or contamination, wetlands, and utility access can throw off project timelines and budgets long before a shovel hits the ground. 

As someone who has led high-profile, multiphase developments across commercial, residential, athletic, and municipal sectors, I’ve seen how critical early due diligence in siting can be to successful retail expansion. I help national retailers navigate these challenges at scale. My job is to define, drive, and deliver land development strategies that align with aggressive timelines and financial goals. That often means coordinating with cross-disciplinary teams, facilitating communication between developers, land use attorneys, and regulatory agencies, and troubleshooting issues that could derail a deal.

Site conditions have a way of testing even the most experienced project managers. The good news is: with the right approach, most issues can be anticipated and managed before they become too expensive or even dealbreakers.

When the Ground Beneath You Isn’t Flat

One of the most common pitfalls retailers face is underestimating topographic complexity. A parcel might appear ripe for development, but closer analysis can reveal a 70-foot elevation change that isn’t immediately apparent. Building on that land will likely require retaining walls, extensive grading, or mass excavation. These requirements don’t just add cost — they can delay permitting, trigger new regulatory reviews, or make the project not feasible altogether.

In one case, a site appeared ideal for one of our clients — a great location, strong visibility, and enough space — but our early due diligence revealed steep slopes and significant rock outcroppings that would require extensive grading and blasting. These unforeseen conditions drove sitework costs far beyond the retailer’s budget, forcing them to walk away. Because we were engaged early, the client avoided a costly land purchase and gained a clearer understanding of how quickly site conditions can derail even the most promising opportunities.

That’s why early topographic assessment is essential. Retailers need to think beyond parcel size and visibility and ask whether the site physically supports their building without significant re-engineering. A design that works across multiple locations may still require creative grading solutions, cost adjustments, or even a complete site plan redesign to make it viable in a particular location.

Zoning Isn’t Just a Checkbox

Another frequent oversight is treating zoning compliance as a binary issue. The common understanding is that a site is either zoned or not zoned for commercial development, but the reality is far more nuanced. Local ordinances may allow retail by right but still impose strict limitations on building height, drive-thrus, signage, or parking configurations. Other times, a permitted use might trigger a special exception process, requiring public hearings or political approvals that add months to the schedule.

We’ve seen situations where a site was technically zoned correctly, but still needed a variance due to floor-area ratio restrictions or another where a gas station component was prohibited due to proximity to a protected aquifer. Regulatory details like these often determine whether a project can move forward. 

As someone who regularly works with local, state, and federal agencies, I can tell you that understanding how regulations are interpreted in practice is just as important as reading the code. Zoning isn’t a box you check — it’s a layer of risk that must be managed with context and experience.

The Hidden Costs of Stormwater and Utilities

Site development doesn’t stop with zoning. Two of the most underestimated cost drivers in retail projects are stormwater management and utility infrastructure. On constrained sites, providing adequate stormwater detention may require underground systems that can cost millions. In more rural areas, a lack of available fire water flow might necessitate storage tanks, booster pumps, or even a new main extension.

These complications are easy to miss during early planning, but they can surface quickly once detailed design begins. In my experience, the most successful retail developers are the ones who bring in engineering support early to evaluate utilities and drainage alongside zoning and access. These technical concerns are critical to budget, schedule, and permitting.

Laying the Groundwork for Scalable Success

Even when the building is standardized, the development process never is. Every site — whether one of many in a regional rollout or a standalone flagship — comes with its own mix of permitting processes, environmental constraints, infrastructure conditions, and political dynamics. Navigating those variables successfully takes more than a strong prototype. It requires a structured yet flexible approach that combines standardized documentation and permitting strategies with local adaptability.

That’s where coordination becomes critical. Complex, multiphase projects depend on disciplined orchestration that aligns teams, timelines, budgets, and approvals to keep development moving forward. And the earlier that coordination begins, the better. Site selection isn’t just about visibility or land price; it hinges on early insight into topography, soils conditions, wetlands, zoning nuances, stormwater feasibility, and utility access. These aren’t details to resolve later. They’re project-defining realities that shape what’s possible from day one.

Whether scaling across dozens of locations or investing in a single site, retailers who treat land development as a strategic, integrated process — not just a checklist — will be better positioned to avoid costly surprises and deliver results with confidence.

 

Michelle Carlson

Michelle Carlson is executive director of land development and survey at BL Companies, a 100% employee-owned firm delivering integrated architecture, engineering, environmental, and land surveying services.

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