Deciding where to locate may be the most important decision an investor makes about any new land project. The wrong site dooms you to spend your days scrambling to find the resources you need to make the project a success. This article examines how to be sure a site is really right for a project.

Deciding where to locate may be the most important decision you make about any new land project. The right site means an abundance of clients or customers, proximity to transportation and shipping resources, access to employees you and your tenants need and local government that welcomes you with open arms and a wealth of services. The wrong site dooms you to spend your days scrambling to find the resources you need to make the project a success.

But how can you be sure a site is really right for your project — notwithstanding all those pretty pictures in a chamber of commerce brochure?

People, prices and perks

Begin by assessing prospective sites based on the following major criteria:

• Proximity to customers and clients,

• Accessibility to transportation and major highways,

• Availability of high-speed data connections and other communications infrastructure,

• Reasonable pricing,

• Availability of skilled employees and reasonable wage rates,

• Pro-business local government officials,

• Reasonable utility rates and cost of living,

• Reasonable business taxes, and

• Proximity to cultural and recreational facilities.

Technology helps site selection

Site selection used to be something of an art — a painstaking process of comparing one site to another, with heavy reliance on intuition and Lady Luck. But these days, developers and investors increasingly rely on constantly improving Geographic Information System (GIS) software to improve the odds.

The newest versions of GIS software can both search for and rate potential sites. What’s more, new site-selection software can reveal many details about prospective customers or employees in a specific locale. Programs use demographic and geographic data taken from massive databanks to compile detailed (graphic, verbal and numerical) views of a site and its surrounding area.

New technology can even track income levels and potential spending patterns and make predictions about how much revenue a particular retail business can expect when located near specific co-tenants.

Leaving Lady Luck behind

The cost of site selection technology varies, with some off-the-shelf solutions available for just under $3,000. But these relatively basic programs generally don’t provide sophisticated mapping functions or database access.

If your budget can handle it, look into purchasing a customized package offering GIS and mapping functions. Most advanced solutions cost approximately $20,000 to $25,000 for the first year. Consider the cost as insurance against the fickle nature of Lady Luck.

For more information, contact an HREA representative at (404) 477-2044 or email info@MyHREA.com.