By Tony Passarello, Senior Associate with Ariamedia
Among companies that were considering relocation before the economy took a U-turn, the intuitive reaction is often to postpone the move indefinitely. After all, there’s enough uncertainty already and the potential carrying costs for unsold homes of relocated executives only raises the ante.
For companies that still have the cash or credit lines to fund a corporate relocation, though, there’s good reason to take a counter-intuitive tack.
A commercial real estate market reeling from vacancies is offering big incentives for new owners and tenants.
Rising unemployment has made it an employers’ market, with plenty of experienced and highly motivated talent eager to work for very competitive wages.
Municipalities reeling from layoffs and business closures are more likely to employ tax and other concessions to replace lost jobs.
A residential real estate market glutted with great homes at great prices means that relocated executives get a windfall bonus with the purchase of a home in their new hometowns.
The bottom line is that companies with a long view vision and the wherewithal to act on it have an unprecedented upside to making a strategic move.