Potty Training at Apartment

I’m going to getting a new puppy very soon and this will be my first dog ever. I’m very excited!

I see a lot of posts about potty training and having puppy potty train outside. I want to potty train my new puppy outside but in a safe environment. My apartment has a small back area that is fenced which is next to grass area with a sidewalk where people walk their dogs but not too close, pretty good distance. It is also next to the Main Street where I live. Pic of back area: https://imgur.com/a/xvp5FUd

If I were to put a pad in the back area and have the puppy go potty there every time, do you guys think the puppy will associate the area as “outside” or "going potty outside"? I’m thinking it will but wanted to confirm my logic. It will also benefit with socialization with getting use to the sounds of people, car driving by and etc.

Please let me know your opinions/tips on this!