With communities now competing for jobs that new business brings, relocation incentives are common, and your business will want to make the most of the current economic climate. While relocation incentives are only one factor in determining where to locate your business – quality of life, work force and transportation may take priority – relocation incentives very often take precedence.
State and local governments’ relocation incentives separate into the following categories:
Economic: infrastructure construction and improvements (new roads, widening roads, upgrading water and sewer plants), land and/or building donations (free or low cost or purchased by the government and leased back to the corporation at discounted rents), low interest loans (made for property improvements and which may be forgiven as certain hiring targets occur), and cash grants.
Education and Training: payment of employee salary during training, subsidized job training, employee relocation assistance.
Tax Incentives: abatement of a percentage of personal property, payroll and/or corporate taxes for a fixed period, reduction in property taxes for a certain period, impact fee waivers.
Other: additional relocation incentives may be offered by utility companies, along with certain private businesses, and may include reduced utility rates, free equipment (energy efficient light fixtures, back-up generators, etcetera), free technical and design assistance.
The above statutory relocation incentives approved and offered to all eligible companies) represent only a starting point. With an experienced real estate broker negotiating for your business’s best interests, your company can achieve additional incentives, limited only by need and imagination. A company that attempts these negotiations solo, or that hires an inexperienced consultant, usually leaves a lot of money on the table.
Michael Coretz – with over 25 years as a local commercial real estate broker with national and international networks – possesses expertise in representing businesses during relocation incentives, incentive negotiations, and site selection. Whether leasing or buying, Michael Coretz of Commercial Real Estate Group of Tucson will ease your decision-making and increase your bottom line.
This fall, Michael is co-hosting with the Arizona Commerce Authority a visit of international site selectors (ITRAGlobal). What message would your company like passed on to the international site selectors about doing business in Arizona? Contact Michael through his website, and let him know.