The Leasing Process

Site Selection

The process of identifying and evaluating candidate properties to find the best fit for operational, logistical, and financial needs — the first real step in any lease search.

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Definition

Site selection is the process of identifying and evaluating candidate properties or locations to determine the best fit for a business's operational, logistical, and financial needs. A thorough site selection process considers building specifications, transportation access, labor market conditions, zoning, and total occupancy cost together, rather than optimizing for any single factor in isolation.

Core site selection criteria

Criteria categoryWhat to evaluate
Building specificationsClear height, dock ratio, floor load, power capacity
Transportation accessHighway, rail, port proximity relevant to your operation
Labor marketLocal workforce availability and cost
Total occupancy costRent, NNN pass-throughs, and any incentive programs
Zoning and regulatory fitConfirmed permitted use for your specific activity

What to watch for before committing

Defining requirements before touring

Establish clear operational requirements (size, specs, location criteria) before beginning to tour candidate properties, to avoid wasted time on poor fits.

Balancing competing priorities

Recognize that criteria like cost, location, and specifications often trade off against each other — prioritize what matters most for your specific operation.

Realistic timeline expectations

Build a realistic timeline for site selection, especially if zoning verification, permitting, or buildout will be needed.

Working with knowledgeable representation

Engage a tenant rep broker with genuine expertise in your target submarket to access off-market opportunities and current data.

Total cost vs headline rent comparison

Evaluate total occupancy cost across candidates, not just headline asking rent, to make accurate comparisons.

Future growth accommodation

Consider whether a candidate site can accommodate reasonable future growth, not just current-day needs.

When you need to know this

  • Starting a new lease search — establishing clear criteria before evaluating candidate properties
  • Expanding or relocating operations — systematically comparing options against defined operational needs
  • Build-to-suit development — choosing a site foundation that supports custom construction requirements
  • Balancing cost against operational fit — weighing multiple criteria to identify the best overall value

Frequently asked questions

What is site selection? +
Site selection is the process of identifying and evaluating candidate properties or locations to determine the best fit for a business's operational, logistical, and financial needs.
What are the most important site selection criteria for a warehouse? +
Key criteria typically include building specifications like clear height and dock ratio, transportation access relevant to your supply chain, labor market conditions, zoning compliance, and total occupancy cost.
How long does site selection typically take? +
This varies significantly based on complexity, market conditions, and whether build-to-suit or extensive buildout is involved, ranging from a few weeks for straightforward existing space to many months for more complex requirements.
Should I use a broker for site selection? +
Working with a tenant rep broker who has genuine expertise in your target submarket is generally valuable, providing access to off-market opportunities and current market data at typically no direct cost to the tenant.

Ready to start your site selection process?

Browse available industrial listings across every U.S. market, or get a free availability report from our team.