Evolving Workforces

Strategic Moves: Integrating Site Selection and Change Management Initiatives

April 4, 2025 4 Minute Read

Smiling woman moving boxes in an office setting during a relocation.

Introduction

CBRE's Headquarters Relocation study analyzed major HQ relocations from 2018 to 2023 and found that business tax incentives, portfolio optimization and proximity to customers were the top reasons for relocating. While these factors offer concrete business benefits, a move also provides a rare opportunity for companies to revisit and rejuvenate employee behaviors and business processes. The decision to relocate the company’s headquarters is far more consequential than merely selecting a new address. This move signifies a strategic shift that can profoundly influence corporate culture and alter operational dynamics. Moving into a new location can catalyze positive employee engagement changes, rationalize workflows and bring new insights that enable the organization to increase focus on its strategic objectives. Therefore, it is crucial to combine change management principles with overall location strategy to ensure smooth integration, enhance cultural improvements and extend relocation benefits beyond logistical or financial advantages.

Considerations for Integrating Location Strategy and Change Management

  1. How does the location strategy of a commercial real estate project impact the change management process?

    The choice of location for a commercial real estate project has a direct influence on the change management process, as it affects a company’s employees and their work environment. It’s crucial to create a link between the strategic decisions for the company’s future and the process of guiding employees through this transition. This approach helps employees understand why changes are being made and what will be different once the new location is fully operational.
  2. What role does change management play in ensuring a successful real estate location strategy?

    Change management plays a vital role in achieving a successful real estate location strategy by fostering an inclusive and transparent transition for employees. It promotes stakeholder buy-in, enhances communication effectiveness, and supports cultural alignment within the organization, all of which contribute to higher employee satisfaction and a smoother relocation experience.
  3. How can effective change management help mitigate risks associated with opening a new location or expanding into a new geography?

    Effective change management minimizes the real risks of employee attrition, low morale, erosion of trust and cultural disruption. By implementing early, well-planned change management, a company will have minimized resistance and fostered acceptance, thereby easing the transition to a new location for all concerned.
  4. What are some key considerations for integrating change management into the decision-making process during site selection analysis?

    When integrating change management into site selection, major factors to consider include early stakeholder engagement, structured communication planning and detailed risk analysis. Employee training and support, cultural considerations and assessment of readiness for change should also be addressed with ongoing monitoring and feedback to identify and resolve issues.

Integrating site selection and location strategy with change management allows companies to consider cultural impacts, not just the physical aspects of relocation.

Figure 1: Relocation Considerations

strategic-moves-integrating-site-selection-and-change-management-initiatives-Fig01-V2

Source: CBRE Americas Consulting, 2025.

Communicating a Relocation Change

  1. Focus on “how” rather than “what” change is coming

    Linking location strategy with change management aligns operational goals with employee engagement. Leaders undergoing significant changes should focus on "how" rather than "what." This is crucial in relocations, which impact logistics, culture and morale. Effective communication paired with intentional engagement and shared learning experiences enables smooth relocations. Through a strategic process with flexibility built in, leaders will create conditions for collaborative transformation.
  2. Prioritize long-term goals over short-term cost cutting

    Location strategies that focus on long-term goals rather than short-term cost-cutting are more likely to be successful. Companies that prioritize immediate financial gains over aligning their workforce with long-term strategic objectives often experience poor employee engagement and high turnover, which disrupts productivity and alignment. Therefore, successful HQ relocations incorporate change management approaches, value both organizational priorities and employee needs and establish a foundation for growth and resilience.
  3. Understand regional laws and regulations

    Different markets often have different laws and regulations, so companies, particularly multinational firms, should consider the political and economic background when forming a relocation strategy. Key factors include political stability, regulatory frameworks, corporate tax implications and cultural compatibility. Companies moving to areas with different labor laws (such as minimum wage or right-to-work vs. non-right-to-work states) must adapt and effectively communicate with employees, requiring a robust change management plan. Companies that proactively address these external factors are more likely to avoid operational disruptions and achieve successful relocations.

Figure 2: State Corporate Income Tax Rates as of January 1, 2025

strategic-moves-integrating-site-selection-and-change-management-initiatives-Fig02

Source: Tax Foundation, 2025.

Note: In addition to regular income taxes, many states impose other taxes on corporations, such as gross receipts taxes and franchise taxes. Some states also impose an alternative minimum tax and special rates on financial institutions. Nevada, Ohio, Texas, and Washington do not have a corporate income tax but do have a gross receipts tax with rates not strictly comparable to corporate income tax rates. Delaware, Oregon, and Tennessee have gross receipts taxes in addition to corporate income taxes, as do several states like Pennsylvania, Virginia, and West Virginia, which permit gross receipts taxes at the local (but not state) level. New Jersey imposes a surtax that adds an additional 2.5% to the rate for corporations with taxable income above $10 million. Connecticut charges a 10% surtax on a business's tax liability if it has gross proceeds of $100 million or more, or if it files as part of a combined unitary group. This surtax was recently extended and is scheduled to expire on January 1, 2026. Illinois' rate includes two separate corporate income taxes, one at a 7% rate and one at a 2.5% rate. In New Jersey, the rates indicated apply to a corporation's entire net income, rather than just income over the threshold.

Evolution of Location Strategies and Employee Preferences

Today's location strategy is driven by the need for corporations to align their presence with talent availability, cost effectiveness and organizational efficiency. This has evolved from focusing on a single metropolitan area to a regional or national approach due to talent migration and workforce demands. Some companies now adopt the hub and spoke model, setting up smaller satellite offices to attract diverse talent pools. This model expands access to qualified candidates and leverages remote work flexibility. Establishing regional centers near key labor markets reduces operational costs while maintaining access to skilled workers. These strategies reduce the need for relocations to expensive cities and meet the workforce's preference for work-life balance, flexibility and regional proximity, helping companies compete for top talent.

Figure 3: Evolving Location Strategies

strategic-moves-integrating-site-selection-and-change-management-initiatives-Fig03

Source: CBRE, Evolving Location Strategies, 2023.

Recognizing the different location preferences of professionals at various life stages allows companies to develop site strategies that cater to these needs, enhancing talent retention. CBRE's 2023 U.S. Talent Migration report noted that major urban centers like New York and San Francisco attract younger professionals, in part due to career opportunities and networking. As professionals advance in their careers, they prioritize affordability, quality of life and family-friendly environments. Cities like Austin and Nashville, with lower costs of living and balanced lifestyles, attract mid-to-late career talent. Organizations that incorporate these demographic trends into their location strategies can better retain talent and boost employee satisfaction. Integrating these strategies with change management frameworks ensures that employee priorities align with the organization's relocation objectives.

According to CBRE's 2024 Occupier Sentiment Survey, more companies intend to expand their portfolio; 38% of firms planned to expand compared with 20% in 2023. While most companies now prefer lease renewals to benefit from market shifts without incurring the costs of relocation, 59% are considering moves that increase the quality of their space. This cautious approach reflects broader economic hesitancy, slowing proactive strategies for change. Flexibility remains an important consideration. In some cases, financial constraints prompt companies to adopt high-impact, low-cost strategies that meet employee needs and maintain competitiveness in a changing work landscape. This strategy favors focused, less expensive enhancements, allowing organizations to stay agile and responsive without overextending their capacity.

Geographic Location Impacts on Employees

Major geographic relocations should be managed strategically and sensitively. Effective change management programs must communicate critical reasons for relocation, its benefits, and how it aligns with the company's strategic vision.

To help employees begin embracing the transition, provide avenues for them to share their concerns and address key questions promptly. Educate the employees on available relocation options, housing assistance, career prospects and potential quality-of-life improvement in cultural, educational and lifestyle opportunities. Implementing the relocation onsite will likely be stressful, and consistent support should be provided through regular check-ins and ongoing feedback opportunities. Recognizing and rewarding employees for their ability to adapt to a new work environment further ease this transition.

Organizations and employees often approach relocations with differing priorities. While companies generally emphasize the financial impact and strategic alignment with long-term goals, employees tend to focus on elements that influence their daily lives. The accompanying graph visually represents these contrasting priorities, highlighting what each group values most throughout the relocation process.

Figure 4: Stakeholder Relocation Priorities

strategic-moves-integrating-site-selection-and-change-management-initiatives-Fig04-V2

Source: CBRE Americas Consulting, 2025.

For more information on integrating real estate relocation strategy with effective change management, contact CBRE’s Site Selection & Location Strategy team. Additionally, CBRE's Organizational Change & Transformation team can guide you in implementing effective change management strategies that drive sustained performance.

Related Insights

Item 0 Item 0 Item 0 Item 0 Item 0 Item 0

Related Services

Contacts