Adding our leverage to yours
Economic development incentives and real estate concessions may be a key factor in determining where (or even if) a new project occurs, or they may be “icing on the cake” of an already sound business case. Either way, companies require a strategic, programmatic and experienced approach to help improve the level of benefits and avoid leaving dollars on the table.
Our negotiation process is designed to maintain flexibility and leverage, while effectively managing the incentives and real estate package. The approach we use has been honed through decades of experience and is customized to mitigate the implementation or ongoing operational challenges associated with the specific candidate sites, buildings, or communities under consideration.
Our approach to negotiations
Our objective is to obtain the preferred deal for the client, which we achieve through a variety of negotiating strategies and tactics:
- Identifying and prioritizing the key issues, challenges and risks that will need to be addressed and resolved to help facilitate a successful implementation and ongoing operations
- Utilizing past project experience, proprietary data sources and local market contacts to benchmark recent real estate and incentives deals
- Providing overall negotiations project management, coordinating the timing of key activities including: negotiations meetings, incentives documentation deadlines; public hearings; incentives closing; internal communications; and external announcements. It is critical that these activities be properly scheduled, to avoid prematurely announcing the company’s intentions and forfeiting incentives
- Conducting parallel real estate and incentives negotiations
- Adding our own leverage to the negotiations by communicating our client’s interests to government and real estate representatives. These groups know us as corporate site selection and negotiations specialists, who have placed past clients in their regions and who will likely return with other potential clients in the future
- Coordinating negotiations in multiple locations, thus increasing the project’s leverage in competing areas
Selected client experience
Our practitioners possess a wide range of negotiations experience including:
- Economic Impact Modeling
- Statutory and Discretionary Incentives
- Expansion and Consolidation Negotiations
- Lease/Purchase Negotiations
Deloitte negotiated over $1 billion in incentives and inducements for a European technology company to support their industry-leading production facility deployment. Our approach yielded a package that included grants, tax inducements, infrastructure assistance, recruiting and training support, utility rate reductions, land cost reduction and more.
About Deloitte’s Real Estate & Location Strategy practice
Deloitte is proud to have one of the industry’s largest consulting practice dedicated to real estate transformation and location strategy. We bring a particular blend of business-focused management consulting experience, real estate and facilities “know how” and cross-industry thought leadership. Our team of seasoned practitioners assists complex organizations in developing innovative strategies and executing complex programs that can add significant value while reducing risk and enhancing enterprise alignment.
With a nationwide presence, our practice is composed of over 200 professionals with management consulting, architecture, real estate, planning, site selection, engineering, operations, construction, technology enablement and financial management experience. Our practitioners and capabilities are deployed globally, with field experience in over 60 countries and Deloitte offices in over 150 countries.
As used in this document, “Deloitte” means Deloitte Consulting LLP, a subsidiary of Deloitte LLP. Please see www.deloitte.com/us/about for a detailed description of the legal structure of Deloitte LLP and its subsidiaries. Certain services may not be available to attest clients under the rules and regulations of public accounting.