July 2002

By James Beatty, NCS International

Now that I have covered three basic call center site selection strategies, Small Town, Urban/Inner City and Global, I would like to turn attention to the subject of buildings and sites. Regardless of which strategy your firm deploys for its search, at some point a building will have to be selected that meets your needs and, most important, meets your approval. How do you select a building, whom do you talk to, what should you look for in a facility, should you build, remodel, retrofit, buy, lease, etc.? Let me give some ideas in this arena.

I would be remiss if I did not encourage you to use the services of a real estate broker, qualified consultant or economic development officials during this component of your search. I have found that brokers, consultants and economic development officials are increasingly more knowledgeable and understanding of the particular needs of call centers than they were even five years ago and, as such, can usually find some interesting and good deals on attractive locations. In fact, some of the more savvy real estate firms and consultants even specialize in the contact center industry and many economic development organizations have also developed internal expertise to cater to the call center industry. This is truly a sign that the industry is seen as a growth market capable of generating significant inward investment and hundreds of good paying jobs in a single project. Brokers, consultants and economic development officials aren't the only source of all knowledge, as I have found that many call centers have developed internal expertise as well, probably out of necessity.

So let's focus on the basics. What should you look for in a facility? Here are some of the most common traits I have been asked to research and find for call center facilities over the years. The two that are always at the top of the list are parking and telecommunications. Parking usually requires 7 to 10 spaces per 1,000 square feet, so if the building size is 30,000 square feet, 210 to 300 spaces would be needed to accommodate your call center. Telecommunications proximity is a must. Certainly the nearer to the point of presence (POP) of the interexchange carrier of your preference the better. I have been told many horror stories about call centers that somehow failed to specify the need for telecommunications access and wound up paying several thousand dollars monthly for access to the proper telecommunications services, such as DS-1/3 facilities. Can you hear me now?

Other concerns are nearby amenities such as day care, public transportation, fast food and other restaurants as well as hotels to accommodate clients and visitors. I have even seen call centers purposely locate near apartment complexes to maximize their proximity and attractiveness to the workforce.

What kind of building should you consider? Generally it has been a single-story Class B or Class A facility depending on the desired degree of curb appeal and impression to clients and potential employees.

Here are some examples of buildings and sites that will assist you as you go about your search and may cause you to rethink where to research.

Former Military Bases ' I receive e-mails, letters and faxes from this group and I am always amazed at the offers they are willing to put on the table for the right company. This includes offering buildings for free, complete with furnishings, or if not free, then leased at an attractive rate that is tied to the employment generated over a specified time. I visited the former Loring Airbase in Maine several years ago and was pleasantly surprised to see the offerings the Development Authority had put on the table specifically for call centers.

Current Military Bases ' While on the famous Red Carpet Tour in Georgia last year, I was once again pleased to learn of the willingness and tremendous desire of the officials at Warner Robbins AFB to develop more civilian use of the base by recruiting firms to expand to their site. I need not tell you how attractive it is for a call center to be located in or even near a military base given the number of spouses and dependents available with a variety of backgrounds and talents including multilingual skills.

Shopping Centers ' One of the best I have seen is the 1.1-million-square-foot facility in Tampa known as Netpark. I was privy to have been there during the construction phase and have been back since it was occupied. This is an excellent use of space and the center actually houses several call centers while providing common amenities such as food service and video conferencing. By the way, parking is no problem at these sites. Many mature (former) shopping centers are repositioning themselves as office sites and are worth your consideration

Closed Centers ' Many call centers close for various reasons, such as mergers, business downturn, owners selling, etc. These facilities can make ideal locations for your facility. You have a ready-made facility that with little additional investment can accommodate your needs. In many cases the equipment and furnishings can also be included in the deal at very attractive rates. What I have found most attractive is that there is a workforce ready and able to continue, especially if the timing is right.

Educational Campuses ' That's right, several school districts, community colleges and four-year institutions I have spoken with over the years have indicated a willingness to allow companies to build or lease space on their campus or in facilities they own with the idea of creating jobs for the students as well as the community at large. In some cases, the institutions have even made transition space available while permanent facilities were being constructed. In many cases, they are also able to use their tax-exempt status to sweeten the deal.

Former Retail Facilities ' Retailers with big box footprints such as Wal-Mart, K-Mart and several supermarket chains have become aggressive in making their vacant facilities available for call center use. They certainly fit one of the key attributes, as parking is generally not an issue. Many even have off-the-shelf drawings on what their facility would look like if converted to call center use. Several even have their own construction companies or work closely with construction firms that have expertise in call centers.

Information/Business Parks ' Many economic development organizations working with local developers such as telecommunications companies have invested in business and industrial parks. These developments have deployed significant telecommunications infrastructure such as fiber optics and other services to cater to information-intensive firms such as call centers. You will see clever names such as smart buildings, smart parks and information parks used to convey to the marketplace their commitment to serve the call center industry.

These are a few examples for you to ponder as you select your next facility. If you have other ideas or thoughts on this topic or other economic development topics you would like to have covered, please e-mail me at jbeatty@callcentersites.net. I want to thank all the readers who take time to e-mail me. I do answer each and every one. Please do not hesitate to provide feedback at any time.

James Beatty is president of NCS International, Inc., which specializes in corporate site selection, community analysis and marketing.

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