This section addresses considerations for the city selection for non-retail operations.

For a warehouse /industrial complex operation, it is always amazing that people will check out the larger cities first. Smaller towns give you a lot more for less. Companies in small towns often pay in a year in overhead, what some companies based in larger cities pay for a month. With shipping so much easier today, it is easier to be located in small locations.

Dealing with local entities such as the city/county government, post office, banks and UPS/FedEx is easier. Often presenting less problems and more personal service. The Chamber of Commerce is a good example. They are there to attract new companies. I know from my prior experience working with my local government (and my MPA degree) that many governments can offer incentives such as lower rental rates, lower utility rates based on the number of employees and other factors.

Major retail department stores and industrial companies can get big incentives with some communities. In our industry, environmental regulations (if casting) and Corporate regulations are also important. As are property taxes and basic cost of property. A warehouse operation would still be viewed as an industrial entity.

For example; In my area the city just received over 1000 acres from the US Army and it will end up being over 2000 acres so they would have a lot of space to sell or rent.

The US Army land near me is clear -- you build as you need sites. At Anniston AL (which is halfway between Atlanta and Birmingham, The US Army closed its Ft McClellan and turned over 1000s of acres to the local government to use for industry and housing. They received all of the barracks, maintenance shops and warehouse building along with other structures to use as needed. Many structures were less 10 years old at the closing. Do not rush into anything check out all the options. Overhead and profit levels are still the bottom line for all of us

Hobby Business: Discussion of Considerations/Issues by Topic

Shipping Considerations
Finances: Accounting and Budget Preparations
The Initial or Expansion Bank Loans
Pricing Methods
Marketing and Advertising
Selecting the Best Site For Non-retail Companies
Glossary