Location Appraisal

Having prepared a detailed specification of requirements, the next step is to instruct consultants to undertake a search for a suitable location.

Guidance on Location Choice: Choosing Locations for Government Business sets out how Government departments should take account of regional economic balance considerations when choosing locations for work being transferred out of London and the South East. It explains the details of how departments should reflect Government policy in the decisions they make about new locations for their business.
The guidance does not attempt to provide a list of places that will be suitable for public sector relocations.

Further information is available from the Regional Development Agencies (RDAs).

Location Search

The specification of requirements  should be used to appoint and brief property advisers who will carry out a search for a suitable location.
 
There should be an initial sieve of locations based on primary criteria and then a second review based on additional criteria. At the end of this, the consultants should have a short-list of four to six areas for detailed examination and comparison.

The criteria used should:

  • be objective and comparable,
  • be simple to apply in the initial sieve,
  • cover what an area has to offer the department and the staff,
  • be weighted to reflect relative importance, and
  • reflect the prioritsed location requirements contained in the brief for the relocation

The scope of the property search will differ depending on the brief, but it should usually cover a number of sources. These include:

  • the property adviser's database,
  • local authorities,
  • institutional and private property owners, and
  • information on property already on the government estate from OGC.

 

Possible Criteria for the Selection of a Location

The Business Environment

 

Accessibility

International - scheduled flights to rest of Europe/the World

 

 

National - rail journey time to London

- access to the motorway network

 

 

Local - public transport provision

- provision of car parking / traffic flow

Proximity to customer base

Appropriate use of new technology may lessen the need to be near customers

Availability and cost of labour

Total labour supply - current and future

Skills and qualifications of workforce

Current salary levels

Competition for people from local employers and others relocating

Unemployment rates

Availability and cost of premises

Number of suitable properties currently available and sites and developments available within the required timescale.

Current rents and rental forecasts for prime location, new, quality space

Lease terms available (for example, rent free periods)

Local planning policies and rates levels

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Perceptions of the area as a business location

Business Services

OGDs / businesses / organisations in the area

3 & 4 star hotels within 15 and 30 minute drive

Conference facilities - for over 100, within 15 and 30 minute drive

Courier services/printing

Business catering facilities

Attitude of Local Authority

Grants and other incentives

   

The Living Environment

 

Character and environment

Numbers of listed buildings

Distance from National park or area of outstanding natural beauty

Housing supply and cost

Current stock and range of housing (and planned additions to this)

Current prices for all housing types.

Houses should be affordable for all staff being relocated

Recent history of price changes

Schooling

Current and future state and private school provision for all ages, including nursery places

Examination results (percentage with over 5 GCSEs at higher grades)

Shopping facilities

Number and range of shops in town centre/out-of-town sites Planned shopping developments .

Culture and entertainment

Cinemas / theatres / museums / art galleries

Sports centres / swimming pools / golf clubs / country parks / spectator sports

Employment opportunities for families

 

Location Report

Once the search has been completed, the property advisers should provide a report to the department on the four to six areas which fit the brief. This report should contain:

  • the results of their evaluation against the location criteria,
  • an assessment against these criteria of the current location as a benchmark against which to measure the alternative locations, and
  • an initial financial appraisal comparing the cost of moving to the identified locations.

In making a final decision on preferred location, it will be important to bear in mind any trade-offs that may need to be made between the objectives of time, cost and quality. The prioritisation of relocation objectives should aid any decision.