Does Available Real Estate Drive Location Decisions?
The ranking of available land and buildings by the respondents to Area Development's Corporate Survey reflects the fact that the importance of these factors is contingent on the project.
Matthew Szuhaj, Director, Consulting Strategy and Operations Practice, Deloitte and Spencer Schobert, Senior Leader, Consulting Strategy and Operations Practice, Deloitte (Oct/Nov 09)
It is not uncommon for companies facing deployment decisions to initially perceive location strategy and site selection as a function of real estate. Everyone is familiar with the classic real estate adage: "There are three things that matter - location, location, location."
But can the reverse perspective also be valid - how much does the right location depend on the availability of real estate? It depends. It is not a question of the importance of real estate in a location decision - it is clearly a critical component - but more the timing for when it becomes a critical driver. More than real estate must be considered.