Picking a City for Business
© John Stolberg
Picking a City for Business -- Three Most Important Factors in the New Economy
Ask a Realtor what the three most important factors are in real estate today, and she'll tell you, "Location, location and location." Ask an internet visionary about real estate, and he'll tell you, "As long as you've got bandwidth, location doesn't matter." Neither of these cliches is a good answer. I'll give you my assessment of the three most important factors in real estate today, but first a quick look at five major U.S. cities.
New York grew early because of its deep water port and access to the interior. As the chief port of entry from Europe, it quickly grew to be the largest city in the western hemisphere. While New York City's population has now been surpassed by Mexico City, it will continue to attract business because of its status as the largest city in the U.S.
San Francisco grew because of its sheltered port on the west coast and became the chief port of entry from Asia. The bay area will continue to prosper as a trading center between the U.S. and Asia.
Miami is now our current major port of entry for the Caribbean, and by extension, Latin America. This city will continue to benefit as out trade with Latin America increases.
Chicago grew as a rail hub between eastern and western rail lines. It continued to prosper as an airline hub for United and American Airlines. American's headquarters is now in Dallas; United is moving many operations to Denver. Boeing's search for a new headquarters between Chicago, Dallas and Denver will probably be telling about Chicago's future.
Los Angeles grew up with the movie industry due to sunshine, warm weather and a proximity to a number of natural settings including ocean, beach, desert, mountain and forest environments.
The New Economy
The success of Wal-Mart as America's largest retailer headquartered in Bentonville, Arkansas is an indicator of the flexibility offered by the new economy. Bentonville's only geographic advantages seem to be that it is centrally located and has access to good fishing holes. Its not even on a major interstate highway. However, despite Wal-Mart's success, there are still three important geographic factors that I expect to drive growth now and in the future.
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