Hey – why’d THAT building go THERE?
You might have asked yourself this passing by a warehouse, a mall, or a housing development. Or maybe you’ve noticed a 50-acre plot that has what seems like a permanent “For Sale” sign staked into the ground. Whether a manufacturing facility, data center, or apartment complex, a detailed site selection process likely brought a developer to that parcel of land—and helped them rule out many others.
Some factors of appeal would be obvious to anyone: who doesn’t want their building on a perch overlooking a lush panorama? And if you’re building a gas station, the highway exit seems like a pretty good bet. But other aspects are more mysterious. What other considerations might sway a developer’s final decision?
Land supply. “Nearly any piece of land is available at the right price,” says Tom Carter, P.E., Senior Vice President at Pape-Dawson Engineers, LLC. But getting the best tract can require a combination of imagination and work. For example, an ideal location may not belong to a single owner. “Even if the land isn’t listed for sale, we might recommend the broker go out and talk with the several adjacent landowners to see if they’d be willing to sell,” Tom says. It might take multiple tracts and a creative approach to make the project work and achieve client goals.
Support from the Authority Having Jurisdiction (AHJ). “In general, are the local authorities a partner or not?” asks Shauna Weaver, P.E., LEED AP BD+C, Senior Vice President at Pape-Dawson. “Are they going to work with the developer on this project, or will they create too much regulation for an industrial site to get constructed quickly and fight it every step of the way?” The answer can mean the difference between an on-time, on-budget project and one that gets mired in delays. Federal, state, and local government incentives such as tax breaks can make some areas especially appealing, but also change with the economic environment and the development’s perceived benefit to the community.
Proximity to some features. What’s nearby—and what’s far away—can also count. Certainly, zoning holds sway. Businesses may locate close to an international airport so employees can make necessary trips, or near suppliers to shorten supply chains. “Data centers usually operate as a hub and spoke,” says Tom, “so the large hyperscale data center and secondary providers will locate next to each other.” Firms might also want to locate in an industry cluster. San Antonio and North Carolina’s Research Triangle, for example, have positioned themselves as leaders in industries like information technology and biosciences. With powerful academic and business momentum in those areas, those cities hold special appeal for like companies looking to expand or relocate.
Distance from other features. Developers might want to build away from other places. To preserve their talent pool, some manufacturers require new facilities to be a certain distance away from others that are similar. For example, an auto parts builder may stipulate that a new facility be 50 miles away from other auto manufacturers to avoid competition for employees.
Weather. Many decisions about location also involve weather, and not just how easy it will be to lure employees to a mild climate (though that can be a factor). Bad weather can interrupt business in ways a company might want to avoid. On the other hand, says Tom, “Tornadoes, hurricanes, earthquakes, and mudslides are too common an occurrence in certain parts of the country. Central Texas, Northern Virginia, and Atlanta have proven to be hot spots for investment.” Building a facility in San Francisco, Houston, or Philadelphia can seem riskier in comparison.
Utilities. Every new construction needs infrastructure of some kind—water, wastewater, electricity, roads—but some have special requirements that limit options. Data centers need both power and water, for instance. And not just a little power, says Tom. “Hyperscalers will need hundreds of megawatts of power to feed their data center, and the delivery schedule for that power is super-critical to their planning.”
Helping investors and businesses find the right land for their needs is a Pape-Dawson specialty, says Shauna. “We’re not trying to be the brokers, but we help brokers and developers find land by giving them our local knowledge of the region and professional engineering know-how.”
That combination can figure crucially in the arrangements, she says. “Add in the experience of our engineers, their knowledge of the sites, and their relationships with the government agencies—and that makes a real difference in finding a location that meets a customer’s unique needs and can get approved and built quickly.”
Some site-selection processes are front-page news. Most never earn our notice. But none of them are random. Why’d THAT building go THERE? The reasons might not always be obvious, but they are crucial to the built world we live in.