The Leader - November/December 2007 - (Page 46)

Gett ING It rIG ht: a ch IevING loNG -term v alue from your real estate I Nvestme Nt A company that implements a strategy detailing how and where to best invest resources to further capitalize its real estate investment may ensure that a location decision doesn’t become a long-term operational mistake. college graduates and professionals to look at Lowe’s as a career destination.” Lowe’s uses a recruiting and employment analytic tool called QTrac to measure the effectiveness of the brand’s employment and training processes on recruiting and retention. Employees are surveyed after 30, 90, 180, 365 days on the job. This attention to employees newly on board can help finetune hiring and training processes, limit turnover, and further aid a company in becoming “the employer of choice.” strateGy tWo: INfrastructure INvestmeNt Money spent on infrastructure, whether at a new site or in major improvements to an existing site, will earn a company the attention of all the right stakeholders: Government, community, and labor pool. The reality for most companies is that quick timing drives decisions. However, a longer time frame allows more options for an employer in terms of the level of infrastructure investment. Although incentives do not drive decisions, the incentives that surface when infrastructure investment becomes part of the equation are worth considering. Therefore, careful planning that allows time to consider all options is ideal. During that time, economic developers working with state agencies can create an attractive incentive program. Infrastructure improvements demonstrate a commitment to doing business in the area. Leaving things in a little better condition than how you found them can be lucrative. Just ask JE Dunn Construction Co., the No. 1-rated contractor in Kansas City, currently building its headquarters downtown. State and local government are supporting the 190,000 sq. ft. (17,652 sq. m.) facility. In fact, the state of Missouri is providing $33 million in financing. The city of Kansas City must assemble the property for the future site through purchase or eminent domain. Tax increment financing, approved by the city and state, will divert taxes generated by the headquarters to pay for a $19 million, cityowned parking garage. An additional $12 million will be used to raze the now-vacant Cherry Street Inn and clear other blighted property, according to a report from the Kansas City Business Journal. The city and state are committed to this project as a strong anchor in that portion of the city. Investment in infrastructure can also get the attention of the private sector. Many companies are considering using environmentally friendly materials to gain a LEED certified status. Wells Fargo provided a $225 million first mortgage loan to affiliates of The JBG Companies for building and refinancing a 460,000 sq.-ft. (42,735 sq.-m.) office complex in Washington, DC, of which 255,000 sq. ft. (23,690 sq. m.) is expected to earn LEED certification. The buzz associated with green buildings can attract financing on the front end and over time keep operating costs down. The Green House: New Directions in Sustainable Architecture reported that the state of California studied this strategy for business: “LEED buildings cost an average of $4 more per sq. ft. ($43 more per sq. m.) than typical construction,” but, over twenty years, “they would generate savings of $48.87 a sq. ft. ($526 per sq. m.) – in current dollars – for standard- and silver-certified buildings, and $67.31 ($725 per sq. m.) for gold- and platinum-certified buildings.” strateGy three: commuNIty INvestmeNt Many companies when moving into new communities find that giving back promotes the “nature of the contract” with the community while raising the visibility of the company. “Nature of the contract” represents the idea that a reciprocal relationship exists between the company and the community. The community supports the business if the business supports the community where employees will live. For example, BellSouth supports events and activities in the arts, education, health and human services and the environment. These include the Palaces of St. Petersburg and the Splendors of Versailles exhibitions, the Mississippi Symphony, the Mississippi Museum of Art, the Mississippi Opera and the USA International Ballet Competition. BellSouth volunteers have worked with school officials and community volunteers to wire schools in 64 Mississippi school districts. BellSouth employees volunteer each year to teach approximately 35 Junior Achievement classes in elementary, middle and high schools in Mississippi. Mississippi Pioneers, made 2 0 0 7 the le aDe r 46 November / December

Table of Contents Feed for the Digital Edition of The Leader - November/December 2007

The Leader - November/December 2007 Leadership Contents Message from the CEO Real Estate in the News Investing in India 110 to One Smaller Workspaces, Better Workspaces Innovating the Workplace Through Design Sustainability and Energy Efficiency Getting It Right Using Location Intelligence to Reinvent Franchises Philips International’s Ron Blanken CB Richard Ellis’ Karen Ellzey The State of Louisiana’s Mike Olivier Industry Tracker Economic Developer Directory Discovery Forum Findings Career Development Emerging Leader Economic Development in the News A Look Ahead Executive Development Spotlight

The Leader - November/December 2007

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