While we may not have a crystal ball, our seasoned SDG team has developed a keen intuition from years of experience navigating numerous deals. This insight allows us to identify early warning signs often indicating a corporate client might abandon a site or terminate their search. Recognizing these signs early in the site selection process is crucial. It’s almost as if we can foresee the downfall of a project when certain critical elements aren’t verified or when the client’s vibes and market conditions signal increased risk. Some issues can be resolved with the right approach, while others may be insurmountable.
In this blog series, we’ll explore the most common deal killers in the site selection process.
Uncovering Site Fatal Flaws
When it comes to site selection, a variety of issues can arise that pose significant risks to development feasibility, cost, or timing. Identifying these issues early is essential to mitigate them where possible or decide swiftly to eliminate the site from consideration. Missing these issues early can waste time and money on a site that ultimately has no chance of being selected.
Common Deal Killers:
- Environmental Issues: Contaminated groundwater that can’t be remediated or indemnified can be a major stumbling block.
- Site Encumbrances: Wetlands, easements, or other encumbrances that prevent the necessary development can halt progress before it begins.
- Rail Service Limitations: Proximity to rail is often a key requirement, but if rail service can’t be provided, it can render a site unusable.
- Utility Constraints: Increasingly, issues with electricity capacity, cost, and delivery timing eliminate otherwise viable sites.
By understanding these potential pitfalls, economic developers, site selectors, and business leaders can better navigate the complexities of site selection and avoid the common traps that can derail a project. Stay tuned for more insights in our series on site selection deal killers.
Our experienced team is singularly focused on finding your project the best site for long-term success. We take a holistic approach and have the expertise to negotiate and navigate the intricacies of your unique company and needs.
Founded in 1999, SDG is a highly specialized site selection consulting firm. We focus on promptly identifying optimum locations, maximizing the value of incentives, and minimizing risk for corporations worldwide. SDG has managed projects with capital investments ranging from $15 million to over $1 billion for companies in various industries, including automotive, chemical, steel, and life science.
We would love to hear your thoughts on this article or discuss how we can help you achieve your company or community’s goals for long-term success. Contact us!
This blog is an excerpt from Mark Williams’ revised and expanded book on site selection, “Corporate Site Selection and Economic Development, A 30-Year Perspective,” scheduled for release early next year.
