Monday, April 25, 2011

The Uniqueness of Site Selection for Call Centers


As compared to typical office and industrial site selection, call centers demand more information about the availability and cost of labor than about the buildings. Call centers evaluate potential state, county and city incentives that are available based on the number of employees and the wage levels of its employees. The reason for this focus is the economic impact of the employee’s salaries over the term of the lease on the local community. 
For Instance:
400
Employees
 X $12.00
per Hour
$4,800
40,000
RSF
 X 2,080
hrs/year/per employee
X $20.00
per RSF
$9,984,000
$800,000
 X 10
year lease term
 X 10
year lease term
$99,840,000
economic input
$8,000,000
real estate cost
Thus, if you can complete a site search for the correct city, or in part of a city, where you can get the same quality and quantity of labor for $1.00/hour less, then theoretically you can offset your annual rental costs.

About the author

Van Power is Chief Operating Officer of NAI Global's Contact (Call) Center / Site Selection Services Worldwide, and is Chief Operating Officer of NAI Robert Lynn's Corporate Services Divsion in the Dallas and Fort Worth, Texas metroplex, He specializes in representing corporate tenants in the site selection, acquisition and disposition of corporate call centers/contact centers, service centers and back-office operations centers worldwide. During his career, Power and his team have completed site selection assignments on over 7 million square feet of contact center space. Power combines comprehensive office, industrial and build-to-suit market knowledge with integrity, resourcefulness, tenacity, and 25 years of negotiation experience to represent the best interests of his corporate and business clients. He was honored as one of The Dallas Business Journal's Commercial Real Estate "HEAVY HITTERS" every year from 1991-2004. NAI Global named Van to the NAI Global Elite, a group comprised of the organization’s top performers and top producers. Power qualified as a Top Performer at the Elite level based on production in 2009. His transaction experience includes representation of tenants both large and small clients, in assignments ranging from negotiating office, industrial, office-flex and build-to-suit leases to major corporate relocations. 
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