What is a Relocation Study?

Relocation is a transfer of the business to a comparable location, serving its customer base and customer profile. The purpose of a relocation study is to identify an available "replacement" site which enables a company to relocate its physical environment and maintain its operating status.

That status includes: market presence, reputation, and "goodwill." It also includes "comparable" business and operating conditions, and income potential. A comparable site is not simply another property, with similar square footage, at which the business could rebuild from scratch, with the inherent risks and profitability lag of a new business start-up.

A truck, office, desk, store, and parking lot can be relocated by anyone. Relocating the business and owners’ energy, history, success, reputation, and profit potential requires an expert.

Successful relocation must include relocating the physical properties and the non-physical business environment which, together, have created the success of the business. Is the business retail, commercial, or industrial? Each has its unique set of considerations to be evaluated.

MJBA identifies relocation criteria to determine the necessary characteristics of an appropriate replacement site. Typically, this involves analysis of such factors as: customer base, effective business trade area, local business environment, competition, traffic flow, day/night demographics, signage and advertising, nature of the business, and its operating history.

After review of existing site characteristics, MJBA investigates the trade area and surrounding environs for a replacement site. Identification of sites includes a comparison of characteristics and evaluation of replacement potential. Can the business reasonably experience comparable operating conditions, service to its customers, business opportunities, and income potential in the new sites?

The tradition and ambiance of a business serve to instill trust, dependence, and loyalty which, over time, generate repeat business. These are the intangibles, or goodwill, which sustain on-going business and contribute to the company’s worth, or value.

At any given time, other businesses may be moving in and out of your community. Whether or not you are under immediate eminent domain condemnation, other businesses are likely to be vying for available properties. The sooner you start the relocation study, the better your chances are of finding a replacement site that is available.