Companies that are looking to expand into new markets are well-served to reach out to that community's economic development office for help finding corporate real estate. These offices, typically operated by cities, counties, and sometimes states, serve as liaisons between government and the business community. They can not only offer useful information but may also be able to help defray the cost of entering a new market. Different offices, sometimes also called Economic Development Authorities, offer different services, but most usually have a good mixture of the following features:
Data
Most EDAs have detailed databases about the economy, geography and demographics of the area that they serve. Businesses can utilize these data sets to determine if an area is appropriate. Some EDAs can even help businesses compare their covered area with others to make a better decision.
Site Selection
As liaisons between business and government, many EDAs have access to geographic information systems that companies can use to complete detailed site selection surveys. Some EDAs also track the corporate real estate market to let companies know which sites are available for lease, purchase or development.
Recruiting
EDAs frequently work closely with state, city and county employment departments to help companies that are considering relocating to their area to find staff. Using EDA recruitment tools helps companies not only save money on hiring talent but also saves time and makes it easier to staff up an operation. EDA data can also help companies to properly compensate employees based on their areas' typical salary and wage levels.
Cutting Red Tape
Every jurisdiction has its own set of laws, regulations and requirements. Economic development offices frequently have staff that can help businesses to understand what they will need to do to be compliant with an areas laws and that can connect business owners to the appropriate people and departments.
Helping Minority/Women-Owned Businesses
Many economic development departments also have a focus on helping businesses that are owned by women or minorities get an especially strong start in their coverage area.
Beyond helping businesses, EDAs have one other key benefit that make them a first stop for corporate real estate professionals. They usually have access to economic incentives to draw new employers. The incentives that a company could receive for adding a given area to their corporate real estate portfolio vary greatly, but can include:
-
Low interest loans and grants right from the EDA to a company to help them set up in a market.
-
Access to TIF -- tax-increment financing -- which is special financing that uses future property tax revenues to help defray the cost of development, including infrastructure to support new corporate real estate projects.
-
Partnerships with private lenders to provide additional credit to businesses.
-
Tax abatement programs that reduce or eliminate property taxes for a period of time to induce companies to move to a new community and to add new buildings or improve existing ones.
Economic development offices typically focus on bringing new businesses to an area. However, they can also get involved when an existing business is considering a move that could take them out of the area. As such, regardless of what a company plans to do with its corporate real estate in a given area, it's always a good idea to reach out to the appropriate EDA to find out what is available.
