The Institutional Real Estate Inc Sponsorship brochure, Connected-Investor Focused, We connect people, data and insights, sponsorship, events, IREI Products
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NATIONAL ASSOCIATION OF REAL ESTATE INVESTMENT MANAGERS 20 For Toyota, identifying a location that would allow collaboration of a large workforce (approximately 5,000), great cost-of-living benefits, being closer to its manufacturers and the chance for its workers to take part in the American dream were cited as key drivers for its headquarters relocation. Another key ingredient was the business-friendly climate in Texas. Consequently, Toyota chose to build a custom headquarters campus in a mixed-use business complex known as Legacy in Plano, Texas, one of the most dynamic and popular relocation targets in the U.S. today. When you look at a company like General Electric, it's interesting to think that you are talking about an over 100-year-old company that is really going through a major transformation. Many of these changes relate to shedding businesses and revamping its identity as an innovation leader. For example, check out a series of General Electric commercials entitled "What's the Matter with Owen?" These commercials are part of a major rebranding strategy to portray General Electric as an innovation leader where the brightest young minds should want to work, and the HQ relocation to Boston is part of this strategy. Interestingly, in the case of General Electric, not all employees will be making the move. In fact, it will only be a relatively small group of professionals compared to the company as a whole. This fact underscores the trend of some companies to consider split operations where certain aspects of their workforce locate in more dynamic downtown settings and others operate outside the city core. The drivers for these split operations can be many, such as separately operating business units or adding commute options, but in many cases the divisions are reflective of the fact that some jobs simply don't warrant the added cost of being in the city. McDonald's cites business momentum, innovation and better customer engagement as drivers, while General Electric claims the business ecosystem, long-term costs, employee quality of life, connections with the world and proximity to other important company assets. However, perhaps the most commonly shared factor among most relocating companies is access to and recruitment of talent. The employment market is fiercely competitive for young talent, especially in today's hyper-connected world where booming tech companies with creative work environments and live, work and play flexibility are scooping up the best of the best new hires. Classic brands with decades-long histories are forced to rethink their business models and employee structures to stay competitive and relevant. In fact, it's hard to find a business or industry that has not been impacted by these factors in some way.