EDITOR’S VIEW

ne way to look at the results of two recent corporate-real-estate-executive pulse-taking exercises is in terms of “before” and “after.” Our annual survey of executives’ picks for the best state business climates included a new question this year: Which business-climate factors are most important to you when determining a location for a new facility? That exercise revealed the criteria most on the minds of site selectors before a location is chosen. The results of that survey, and the broader state business-climate ranking, can be found in our cover story.

   Meanwhile, the “Get Some Help” session at the recent IAMC Fall 2007 Professional Forum in St. Louis covered topics submitted by IAMC active members prior to the conference. (For more on IAMC and the Fall Forum, see the “IAMC Insider” on page 839.) The topics discussed represent those issues most on the minds of the responding corporate real estate executives – or what matters most to them after the location is chosen and portfolio management is under way.

   To the first point, the business-climate survey respondents rank site-selection criteria in order of importance as such: (1) existing work-force skills; (2) ease of permitting and regulatory procedures; (3) the state and local tax scheme; (4) land and building prices and supply; (5) availability of incentives; (6) transportation infrastructure; (7) state and local economic development strategies; (8) flexibility of incentives programs; (9) access to higher education resources; and (10) union activity. A state’s business climate will, in general terms, reflect its performance in these areas.

   Not making the Top 10 list, but nevertheless a factor, is a state’s elected official leadership. That point will be of interest to the governors in attendance at the Republican Governors Association gathering in late November, where I will participate on a panel on sustainable economic development. The governors I know realize that if they don’t have the necessary work force,

a smooth permitting process and a favorable tax environment, all the personal charm and selling skills in the world won’t make a difference.

   To the second point – the after side of the equation – IAMC members and other corporate real estate executives are increasingly thinking about what their role is with respect to “The Green Imperative,” which happens to be the topic of a feature article planned for our January 2008 issue. Closer analysis reveals the essence of their concern – return on investment. Among the questions discussed at the IAMC Forum were these: If you’ve “greened” some facilities, what worked, and what resulted in the largest payback? How is your company demonstrating its commitment to sustainable development? How do you determine the costs and benefits associated with LEED certification?

   Several other topics were discussed at length in the “Get Some Help” session, but it is clear that environmental concerns are emerging as a new priority for the corporate real estate profession, particularly on the industrial side. The extent to which states can work with private industry to ameliorate those concerns may one day soon be an important new business-climate criterion.

   Till next time,

   Mark Arend