Framework for the site selection

 FRAMEWORK FOR THE SITE SELECTION   

The framework of site selection assessment criteria includes six dimensions which are "plant location", "environment and natural conditions", "construction and operating costs", "infrastructure and equipment", and "human resources". Site selection indicates the practice of new facility location, both for business and government. Site selection involves measuring the needs of a new project against the merits of potential locations. The practice came of age during the 20th century, as governments and corporate operations expanded to new geographies on a national and international scale.

Factors for site selection: 

Market planning and site selection is not based solely on where your target audience lives anymore. As consumers' schedules get more complicated and competition increases, researching your next ideal location and market has become much more complicated.

There are many factors that can go into identifying, evaluating and acquiring new locations. When selecting the perfect market and site, always keep the following 4 areas in mind:

1. Accessibility

Any location you consider should be easy to access. Look for places that are nearby one or more major roads (in good condition) and are easily served by public transportation, if applicable. If it makes sense for your brand, also research storefronts that are within walking distance of neighborhoods or high-rise apartments. (Note: if you are currently in a location with a lot of pedestrian traffic, make sure you have an amazing window display to draw those potential customers inside!)

Besides being easy to access, consider how accessible other places are from you. Consider a location that is near other stores as well as places that people visit regularly, such as a grocery store, bank or post office.

Also consider a place that is easily visible from the road. Having your sign visible to traffic is constant advertisement for your brand.

2. Competitors

Check for compatibility with nearby stores when researching a site. The ideal location will have neighboring stores with a similar target audience that sell products or services that complement what you offer.

For example, as a high-end boutique shop, a great location for you might be next to a nail salon and a bistro. If you are a record shop, consider finding a location near a music venue or vintage store. With this strategy, you are helping create a bigger retail experience than you could offer alone.

Similarly, avoid setting up shop near direct competition, especially if they are a more established brand. If you do end up by a competitor, you will have to not only share the market, but will also need to come up with a competitive advantage to draw customers to you versus the other.

3. Parking

Except for cities like New York and Chicago, parking availability is very important for your business. How many times have you decided to skip a store because you could not find a parking spot? A good measure for retailers to follow is the ratio of 3:1, or 3 square feet of parking space for 1 square foot of store.

Not only should parking be readily available, but also consider the layout of the parking lot or garage. If it is easy to find a parking spot, but then difficult to get into it because the spaces or lanes are too narrow, this can also deter shoppers from returning in the future.

4. Costs

Beyond the base rent, consider other costs that may affect your bottom line. If you are in a retail strip, how much will it cost you to contribute to lawn care, utilities and security? If the location is remote, how much more money will you need to spend on marketing? Is the location ready for move-in, or will it require significant repairs? What are your common area maintenance (CAM) expenses? These costs can quickly add up and make a seemingly cheap option into a money pit.

Want to easily identify and quickly move on the best locations for your business? Contact us to learn more about Accruent’s Market Planning & Site Selection software for retail.

PROCESS

The site selection process includes a detailed evaluation of project needs which are then measured against the merits of potential locations. The process typically includes selecting and evaluating communities, real estate site analysis and acquisition, and may include negotiating tax incentives. site selection considerations should begin early in the capital development process and play a significant role in pre-planning discussions.The process includes the following steps:

1. Define project criteria

1. Evaluate communities

1. Create short list of communities based upon project criteria

1. Identify real estate sites within each finalist community

1. Real estate analysis

1. Negotiate tax incentives

1. Site acquisition

Detailed site selection typically requires nine months for federal project and four to six months for private sector projects. The National Environmental Protection Act may extend the site selection timeline for federal agencies, depending on the level of environmental analysis required.

 Step 1: Confirm Readiness

 Purpose 

The Regional Offices establish the appropriate process for each project, based on the project requirements, expected time needed for site selection, availability and expertise of Regional staff, and other factors. The purpose of the readiness review is to assess when to begin the formal and informal site selection activities, to determine whether there are any significant changes in the assumptions of the Feasibility Study and Site and Design Prospectus, and to identify any emerging issues and information that can impact site selection. A readiness review can identify changes in GSA regulations and programs, local market and real estate development conditions, the mission or operations of the customer agency, or the current availability of sites since the completion of the Feasibility Study. Identifying changes early on allows the Team Leader to plan and manage the schedule, budget, and team resources appropriately.

Step 2: Develop the Work Plan

Purpose

 The Site Selection Work Plan is an important project management tool. The site selection process is complex and requires careful management of the schedule, budget, and team resources. Creating and using the Work Plan establishes a framework for organizing and leading the site selection effort. Composing a Site Selection Work Plan can: • Provide guidance to ensure that site selection is performed accurately and completely; • Ensure that the appropriate experts and professionals participate at the right time; • Complete the site selection tasks in an efficient manner; and • Keep stakeholders informed and aid in reaching consensus for the recommended sites(s).

Step 3: Conduct Search for Sites

 Purpose

 GSA’s site selection process supports effective and efficient performance of the customer agency’s missions and programs. Additionally, the process provides an opportunity to support federal policies for sustainability, community planning, historic preservation, and environmental quality in the delineation of the search area and the development of criteria chosen to identify successful sites. There is no legal requirement that GSA obtain competition in selecting sites for public buildings. However, soliciting for sites is one way of “proving” that the chosen alternative is the best one. The evaluation process should be completed regardless of how the site is obtained in order to document the rationale for the selection. This methodical analysis will answer many questions often asked by Congress, OMB, and the taxpayer regarding how the site was selected. The search for potential sites requires an understanding of GSA’s real property acquisition procedures, as well as familiarity with real estate and development activities in the local community. Examining a variety of sites demonstrates that the selected site offers the government the best site for all factors considered. This process also provides viable second- and third-choice sites. If the preferred site is eliminated later, then these alternative sites can be used, without restarting the site selection process and adversely impacting the schedule. The examined sites may include sites presented by offerors, identified by the Site Investigation Team, or used in the Feasibility Study. This step describes the activities necessary to complete the search for sites and the evaluation of the site offers.

Step 4: Evaluate Long List

Purpose 

In this step, the Site Investigation Team—using their knowledge of the project and its requirements, technical factors, and financial factors—reviews and evaluates the long list. Typically, the three (3) most suitable sites that satisfy the evaluation criteria compose the short list for further analysis. Creating the short list is a significant step toward selecting the site. The team coordinates with representatives of the customer agency and any contractors, such as professional services firms, for NEPA and NHPA studies. The team also should coordinate closely with representatives of local government, the congressional delegation, and stakeholders.

Step 5: Evaluate Short List/Recommend Site(s)

 Purpose

 The purpose of this step is to evaluate the short-listed sites and to recommend a final site selection. This step of the site selection process historically has been the most difficult. The inherent pressures and conflicts all come into focus with the completion of the final detailed analysis and evaluation. The team may avoid many of these complications by following a structured and thorough process. Additionally, the completion of NEPA (CATEX, EA, EIS), ESA (Phases I, II, III), and NHPA (Section 106) reports, as well as special studies, occurs during this step. It is not uncommon for these activities to take six (6) months to twelve (12) months to complete, and they may lead to elimination or change in preference of the short-listed sites