Price of Office Lease May Be the Least of Your Concerns.

Although price is always a key component of any lease, today's sophisticated tenants are taking into consideration other important elements when contemplating a move, relocation or expansion.

Location, Location, Location 

Whether commercial, industrial or residential, when a decision concerns real estate, the three Ls -- location, location and location -- are always on the top of any advisor's list. Paramount to a business' move is a decision about the community in which it is planning to establish itself.

Outlook for the Future -- What is the community's outlook for continued growth and vitality? A desirable community will be one that exhibits a critical mass of businesses and industry with a vibrant mix of highly trained people, state-of-the-art facilities, ample land, abundant housing, and a secure community environment that offers outstanding social, recreational and community services.

Attitude -- Does the location have a business-friendly reputation? Anyone who has had to deal with city and county bureaucracies can appreciate the difference one-on-one attention affords facilitation of the business process.

Business Clusters -- Are there existing business clusters that will help attract other leading companies in an industry and thereby help grow businesses? Bio-med, technology, aerospace, research and development, manufacturing, and entertainment are just some of the industries that benefit from the synergistic energies and support services when clustered geographically.

Space -- Is there enough space to expand facilities in the future? The ideal community is going to be one that will provide the opportunity for a business to grow, expand or consolidate multiple departments or locations without the need to relocate employees, management or support services in the future.

Strategic Access -- Does the location under consideration provide strategic access to transportation? Easy access to Southern California's eight major freeways and highways, Los Angeles International and Burbank Airports, the Ports of Los Angeles and Long Beach will be a critical consideration for those companies that rely on ground, air and sea transport.

Visibility -- Does the building provide freeway visibility and easy access? Freeway visibility can provide "free" advertising and increase consumer awareness of your company name and brand.

Facilities -- Are different building options available to meet ever-changing business needs? Is the community under consideration responsive to the changing preferences of users towards more campus-oriented developments with abundant parking, redundant systems and retail services nearby? Keeping an eye to long-term goals versus short-term needs may be less costly in the long run.

Technology -- Does the community provide fiber ready access to the newest high-speed broadband technologies? For businesses to grow, they must be able to take advantage of and build on technological advances.

Workforce -- Does the community provide access to a large and diverse workforce to meet a company's needs? In addition to current workforce access, check into the untapped workforce that may available, giving a business access to talent at a reduced fee. For example, many may prefer to work closer to home and be willing to take a pay decrease to do so. In addition, there may be talent willing to go back to work for the right job.

Support Services -- Does the community have ample support services for successful business growth? The desirable community is one that can provide everything needed locally.

Workforce Considerations

Housing -- Is there adequate nearby housing for all levels of your workforce? To attract and retain employees, affordable apartments, entry-level condominiums and homes, moveup and larger singlefarnily detached homes, to executive housing that proyides greater privacy and spaciousness must be available nearby.

Schools -- Does the community put a premium on education and support of local schools? The quality of school districts often dictates where a family is willing to live or move to, thus good schools serve as a magnet for a talented workforce.

Quality of Life -- Is there a close-knit sense of community? Is it safe? Does it offer recreational and social amenities that will help attract and retain employees? Safety is important to employer and employee alike. The FBI maintains lists of the safest cities in America. Another resource to check is a book, 50 Fabulous Places to Raise Your Family.

All work and no play is also no fun -- A well-planned community will offer athletic and fitness facilities, neighborhood recreational centers, swimming pools, tennis courts, parks, biking, hiking trails, golf, organized sports teams, open spaces as well as quality retail, restaurants, and entertainment facilities.

Commute -- Will employees benefit from a smaller commute, or a reverse commute that reduces their actual drive time? Sometimes being further "out" may mean less drive time and increased family or leisure time, a definite draw for employee retention.

Recruitment and Training -- Does the location provide proximity to prestigious academic. institutions? Access to academic institutions provides an excellent source for recruiting employees, and allows executives and staff to train and retrain for cutting-edge skills. Local colleges may also work with businesses to develop custom educational and skil Is-training programs.

In summary, even while some markets are experiencing dot.com hangovers and others escalating office vacancy rates, price should not be the prime motivator in the choice of office location. Strong and vital communities will weather economic vicissitudes, creating a compelling long-term reason for a company to move, relocate or expand their operations therein.

James E. Brown is Vice President, Commercial and Industrial Properties at Newhall Land, developers of new towns and master-planned communities in north Los Angeles County, and Valencia Gateway, the largest master-planned center for Business, Technology and Industry in Los Angeles County with 4,500 acres, 18.5 million square feet, 40,000 employees and 1,200 companies in the Santa Clarita Valley.