Area Development Homepage >> Annual Reports >>

Corporate Survey Analysis by Thomas J. Stringer

Thomas J. Stringer, Esq., Principal, Site Selection & Business Incentives, Ryan & Company (Dec/Jan 08)

Editors Picks

The survey results are a reaffirmation of recent trends in the market and not at all surprising.

Of the top 10 site selection factors identified this year, it is very interesting to note that eight are cost-drivers that have a direct impact on the bottom line. Corporate real estate departments are increasingly judged upon the total financial return on the investment for a project and not merely the acquisition of space for operations. This fiscal accountability began to surface through the oversight implemented under the Sarbanes-Oxley accounting regulations in 2002-2003 and has intensified through the recent credit crunch that will dominate the economy through the next several quarters.

Market accountability and responsiveness to shareholders are placing ever-increasing demands on corporate real estate professionals to bring projects online to full operational capacity, while maximizing speed to market, monetizing the real estate value, containing costs through incentives negotiations, and managing return on project investment. These trends are reflective in the cost-drivers emerging as the leading site selection factors.

The corporate location process is increasingly a study in complexity and speed. This has lead corporate real estate directors to create and rely upon "on call" project teams of professionals with dedicated specialties such as incentives, brokerage, logistics, project management, and public relations in order to maximize value at each step of a project's evaluation.

Globalization is also playing a role in transforming real estate into more of a commodity - thus the focus on the cost-drivers emerging as the key site selection factors. Once considered an independent factor, the real estate acquisition is now truly a second-tier criterion with the ultimate location decision determined by striking a balance between labor/quality (the specific skill sets required for the project) and total project costs.
This is an increasing trend among our clients for whom bottom-line factors - rather than quality of life - are truly driving the process. To a large degree, this is indicative of the commoditization of production, goods, and services generally in the U.S. economy across all markets.

PDF: 22nd Annual Corporate Survey

Save/Share Article

About the Author

Thomas J. Stringer, Esq., Principal, Site Selection & Business Incentives, Ryan & Company
Thomas J. Stringer has more than 10 years of experience securing federal, state, and local incentives worth more than $1.5 billion for small, middle market, and Fortune 1000 companies. In addition to representing clients in some of the largest transactions on the East Coast, Stringer is often engaged by regional, state, and foreign economic development agencies to advise on all phases of strategic business development and foreign direct investment initiatives.

More articles by Thomas J. Stringer, Esq.

ASK AREA DEVELOPMENT

Have questions, comments or concerns about this article? Submit to Ask Area Development here and the author or an expert from our network of site selection and facility planning professionals will answer:

Privacy policy / GuidelinesArea Development will select a number of questions to answer each week. An Area Development representative will contact the submitting reader directly with feedback. Additionally, all submissions are eligible to appear online or in our print publication. If your question is selected for publication we will include and publish your first name, job title and industry only. The full identity of the submitting reader will not appear in published format.Area Development will not publish, share with any third parties, or use for marketing purposes any personal information submitted here without the express consent of the submitting reader.

News Items

Around The Web

Studies/Research

News Items

Around The Web

Studies/Research

POLARIS Laboratories Invests $4.72 Million To Expand Its Indianapolis, Indiana, Manufacturing Center

State Resource map

Click on any state for links to current state news and data, contact directory, corporate taxes, financial and business incentives, credits, grants and available buildings and sites

State Resource Sponsor