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Understanding Cor
<br /> continued from page 23
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<br /> 12 Key Corporate Location
<br /> Trends To Watch
<br /> George D. Livingston, president, NAI Realvest Partners, Inc.,
<br /> Maitland, Florida, has identified 12 corporate location trends
<br /> to watch as the economy and confidence improves and as 4.Impact of 9/11 is ongoing. The impact of 9/11 will be
<br /> corporations again enter the real estate markets. They are: ongoing, with ERM (Enterprise Risk Management) becoming a
<br /> 1.Activity level increasing. Over the major force in shaping location strategy. Actions likely to be
<br /> past two years, the number of corporate embraced include: real time data replication; redundant opera-
<br /> relocation deals has been significantly tions; distributed work; decentralization; small, multiple opera
<br /> 1,''41*N00 „
<br /> depressed.The majority of deals were tions; grow elsewhere; shift personnel within multiple buildings;
<br /> ,, .4
<br /> , :.. , . ' expansions and occasional relocations relocation of back offices/critical parts manufacturing from
<br /> by small to medium-size companies and offshore to U.S. or from one continent to anther; geography of
<br /> - the consolidation of larger companies. supply chain better managed; increase in safety stock for
<br /> ,;. As determined from a variety of different manufacturers; increase in outsourcing of disaster recovery and
<br /> ` sources, Livingston said that is now other operations; likely to be less interested in downtown locations;
<br /> George D.uvingston turning around and activity levels are site security; and terrorist insurance likely to be an issue.
<br /> increasing. S.Labor markets will again assume primacy in most corporate
<br /> 2. Today's active industries. Among location decisions. While this trend may be experiencing a
<br /> today's locationally active industries are temporary lull, once the economy kicks up, there will again be
<br /> health-related, food processing, auto a severe national shortage across skillsets/industries.
<br /> parts, data centers, shared services 6.Logistics has emerged as a prime locational influence.
<br /> centers, call center consolidation,
<br /> 0
<br /> distribution (especially retail) and 7.Electric power is an influential locational variable. Electric
<br /> outsourcing firms. power is exerting greater influence over location decisions, even
<br /> for companies that are not that energy-intensive.The issues
<br /> 3. Most active regions. The hottest areas include: cost, price stability, capacity, reliability and dual power
<br /> are the Southeast from the Carolinas to feed.
<br /> Florida and the South Central Region from
<br /> Alabama through Tennessee. 8.Telecommunications is a crucial locational factor. This applies
<br /> to call centers, other back offices, data centers and some
<br /> manufacturing plants.
<br /> 9.Decision cycle for�stablishing new facilities continues to
<br /> Quotable shrink. This trend will place far greater emphasis on available
<br /> Will @o-Not-Call Registry buildings, construction time and permit approval time.
<br /> 10.Small town/rural areas are becoming increasingly nopuiar
<br /> Nix Call Center Space? locations.
<br /> "It is our approximation that five to 10 million square feet of 11. Offshore locations will continue to comprise viable options
<br /> commercial space in the U.S. currently houses telemarketing for many companies.
<br /> call centers and service providers.With the new telemarketing 12. High tech requires specialized criteria. These criteria include
<br /> limits, many of these centers will be forced to reduce their critical mass of companies, people, research, universities,
<br /> real estate or go out of business.A huge amount of square vendors and venture capital; perceived quality of life; image/
<br /> footage will come back into the market.With 50 million reputation; campus sites; and air access. If an area isnot
<br /> Americans already registered for Da-Not-Call, if only 30 among the best perceived places in the U.S. to live, it must
<br /> percent of the square footage occupied by call centers were have unique, industry-specific assets to attract high tech.■
<br /> to become vacant over the next two years, that would be an www.realvest.com
<br /> influx of 1.5 to 3 million square feet back on the market. Call- For__more i,n f_o r m a ti_on
<br /> center office space typically has large floorplates, which often Boomtown USA::.The r/z Keys to Big
<br /> Iso
<br /> ldon't suit a typical office tenant, and the challenge will be in Success-in Small.Towns.New book from
<br /> G marketing this vacant space to the rest of the market." NAIOP on finding opportunities in small
<br /> 03
<br /> —Tom Gustafson, Vice President of Colliers International. ■
<br /> z
<br /> towns.,http://store.naiop.org
<br /> By Ron Derven,co-editor,
<br /> Development magazine.
<br /> 24 Development WINTER 2003
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