When finding a location, you may already be familiar with the fundamentals of the site selection process in build-to-suit development. However, as technology and data become more sophisticated, your approach will need to become more detailed.
“The goal is to turn data into information, and information into insight,” former HP CEO Carly Fiorina said.
Here are some tips for choosing a location more strategically.
- Form the Right Team
It would be best if you had an “A” team to increase your chances of being close to your strategic trade area during the critical site selection stage of searching for a new, viable location. To name a few, the team should cover all bases: cost accounting, logistics, engineering, construction, and environmental. Also, avoid including the decision makers (if applicable) too late in the game by only presenting the final results. More communication fosters buy-in and comprehension of the highly analytical process.
If you decide to hire an experienced developer as the expert, here are five questions you should ask to ensure quality results.
- Verify the Search Area
Typically, tenants begin the site selection process by identifying a general region in which the company should be located based on various factors such as transportation, human capital requirements, and market dynamics research. Other factors to consider when deciding where to expand include the laws, low barriers to entry, other tenant recommendations, and your existing locations. Consider your overall network as a whole rather than each location individually.
Consider using a geographic filtering process for a more data-driven approach. Confirm the geography against your overall operational objectives and criteria.
It is critical to comprehend the quantitative and qualitative aspects of the baseline quantitative analysis.
Among the quantitative items are:
- Traffic patterns – Where will your customers be coming from, and where are your competitors located concerning you?
- Demographics – Is your company’s ideal customer the local population and traffic? “Do you have a strategic location that is convenient for your target customer?” ”
Among the qualitative items are:
- Visibility – Are there any obstructions in the way, such as trees, signs, or other structures? Is the property low or high about the road, making it difficult to see?
- Access – Are there any medians or “pork chops” preventing customers from turning? Is the proposed location more accessible than your competition? Is there any plan to expand that road, which could affect access?
- Consider Every Issue
This tip entails keeping meticulous records of your prospective site’s critical location factors, specifications, needs, timing, and risks. As previously stated, don’t be tempted only to consider the easily quantifiable aspects, such as labor costs, real estate, and taxes.
Another factor is community trends, which can vary from year to year because each site is linked to other towns, labor, demographics, politics, and real estate markets. Here are some more blunders to avoid.
So, if you’re planning a new location, use these tips to take a more strategic approach to the build-to-suit site selection process. Keep in mind the benefits of working with a professional developer with a solid track record.
******************************
Come join us! Email me at mark@dolphinpi.us to find out more about our next real estate investment.