Before You Search for Space, Define What the Location Has to Do

Rent matters. But a relocation decision can affect talent, customers, operations, commuting, capital investment and the ability of the business to function.

Originally published September 2019. Updated September 2026 to reflect current owner-side relocation and location strategy considerations.

A sound corporate relocation strategy starts by defining what the location has to do for the business before individual buildings are compared.

A company considering a relocation can quickly start looking at buildings.

Available square footage. Rent. Incentives. Parking. Amenities. Commute times.

Those things matter.

But I would start one step earlier.

“What does the location have to do for the business?”

That question changes the search.

A headquarters may need to help attract a particular workforce. An operating facility may need access to highways, utilities or specialized labor. A client-facing business may need proximity to customers. Another organization may care more about resilience, expansion capacity or access to transportation.

Until those priorities are clear, comparing locations can create a lot of information without necessarily producing a good decision.

Start With the Business Requirements

Before evaluating individual buildings, define the requirements that could materially affect location.

They might include:

• where employees live and how they commute;
• access to customers, suppliers or business partners;
• availability of specialized labor;
• transportation and logistics;
• utility capacity and reliability;
• proximity to airports or transit;
• regulatory and tax considerations;
• business continuity and resilience;
• future growth; and
• the type of workplace or operation the business intends to create.

Not every factor will carry equal weight.

That’s the point.

The owner needs to determine which ones actually drive the decision.

Don’t Let an Attractive Building Define the Strategy

A building can look like an opportunity before anyone has established whether the location works.

Perhaps the economics are compelling.
Perhaps the landlord is offering substantial concessions.
Perhaps the space is already built.

Those advantages deserve consideration, but they shouldn’t quietly redefine the business requirements.

An inexpensive location that makes recruiting substantially harder may not be inexpensive.

A building with favorable rent but inadequate electrical capacity may require major capital investment.

A location that works today but provides no reasonable expansion path may create another relocation sooner than expected.

The real-estate economics need to be evaluated alongside the operational consequences.

Understand Where the Workforce Actually Comes From

Employee geography is an important input, particularly for businesses where people are expected to be physically present.

But a map of current employee addresses isn’t enough.

The organization should also consider where it expects to recruit future employees, which positions are difficult to fill, how frequently people need to be on site and whether different groups have materially different commuting patterns.

A location that is convenient for today’s organization may not support tomorrow’s.

That doesn’t mean employee preference determines the site.

It means workforce access is part of the business case.

Customers and Operations May Pull in a Different Direction

The best location for employees may not be the best location for customers, logistics or operations.

That’s where the decision becomes more interesting.

A company may benefit from being near an industry cluster or major customers. A technical operation may need infrastructure that eliminates otherwise attractive locations. A business with frequent travel may place greater value on airport access. Another may depend on highway access, loading, parking or public transportation.

There isn’t one universal definition of a good location.

There is a location that best supports the particular business.

Look Beyond the Property Line

A real-estate decision isn’t limited to what exists inside the building.

The surrounding environment matters.

• What services are nearby?
• Can employees reasonably get there?
• What happens during peak commuting periods?
  Is the surrounding area changing?
• Are there planned infrastructure projects or developments that could improve—or complicate—the location?
• Does the neighborhood support the type of workplace or operation the company is trying to create?

A building can satisfy the program and still be the wrong location.

Test the Capital Consequences

Two locations with similar rents can have very different total economics.

One may require substantial infrastructure upgrades.

Another may have usable existing improvements.

One may require new generators, electrical service, HVAC capacity or structural work.

Another may create significant technology, security or relocation costs.

Those differences belong in the location decision—not in a capital budget discovered after the lease is substantially negotiated.

The owner should understand the likely total occupancy and capital implications before treating two alternatives as economically comparable.

Decide What Can Move and What Cannot

Most searches eventually involve compromise.

The useful question is which requirements are flexible.

Perhaps the preferred geography can expand.
Perhaps parking ratios can change.
Perhaps a building deficiency can be solved economically.
Perhaps an operational requirement cannot.

Defining those distinctions early gives the real-estate team room to search without losing sight of why the organization is moving in the first place.

The Search Should Follow the Strategy

A broker can identify available properties.

Consultants can evaluate buildings.

Finance can model occupancy costs.

Employees and operating groups can identify requirements.

But the owner still has to establish what the relocation is supposed to accomplish.

Otherwise, the process can become very good at comparing buildings before the organization has agreed on what makes one location better than another.

Leadership takeaway: Define the business requirements before comparing real estate. The best location is the one that supports the operation, workforce and strategy after the full occupancy and capital