The secrets of successful corporate relocation

Steven McCord

By Steven McCord

Co-founder and CEO of Spatial Laser, the company behind Locate Alpha.

July 20, 2021

So, you’ve decided to join the flood of firms moving to Texas.

Perhaps by now, you’ve narrowed down your search somewhat and are working with a number of localities. Now, it’s a question of digging into the details:

  1. Is there enough affordable housing for your employees?
  2. Are there good schools?
  3. Are there enough amenities or places to eat?

How do you figure all this out? Let’s take an example.

Homes your employees can afford

Starting with the basics, here’s an example of what house prices look like in Allen, Texas.

Source: Automated valuations of single family homes, Spatial Laser analysis. Contact us for a full resolution version.

Mapping out PITIs

That’s nice, but there’s a saying in real estate…people buy “payments, not houses.” Based on how much your employees might be paid, the question becomes whether they can make the payments.

Now here’s something you don’t see every day, a payment map. Or more specifically a “PITI” Map. That stands for principal + interest + tax + insurance. There’s a clear difference in affordability on one side Highway 75 vs the other. Assume most people can tolerate putting 30% of their gross income towards this (and lending standards also dictate this limit), and you can back into a household income required to buy in a given area. For instance, an area with a PITI of $2,500/mo would require a household income of $8,300, or $100,000 /yr.

Source: Automated valuations of single family homes, Spatial Laser analysis, assuming a 30-year fixed mortgage at today’s rates, and 20% down.

Are there enough houses?

Sounds great, but are there houses like that to available buy? It’s a tight market out there, and how do different neighborhoods measure up? There are some subtle differences even within the same city, with months of inventory trending lower as you move closer to the 121 Tollway corridor on the northwest side of the map. Popularity of that area is likely due to the greater access those areas enjoy to other job clusters down the toll road.

Source: North Texas Real Estate Information System (NTREIS), Spatial Laser Analysis

Sales hotspots

An indication of where the market might be headed is given by the sales rate. You got that right – the intensity of sales. We measure sales activity per house, per month to understand where buying activity is particularly strong and you might have to work harder to outbid other buyers.

Source: Deed transfer records from Collin County, Spatial Laser analysis

Where the good schools are

Families care a lot about school quality. A quick litmus test for schools is the GreatSchools score, which you have probably seen before. But what you probably haven’t seen is this mapped out by block. Below, we averaged out the scores for all schools that a given location feeds into. There are some small differences, but overall, everything looks pretty good!

Source: GreatSchools, Spatial Laser analysis

That’s great news, but how about you want to be able to walk to those schools. From where, exactly, is it possible to do that? And how about walk to a park after school. We’ve calculated that below. Some nooks and crannies are a lot more convenient than others. It really varies a lot from block to block.

Source: Point of interest data, Spatial Laser analysis

Places to shop, eat, and play

Amenities also matter – restaurants and retail. Looking at retail first, there are some major differences across a short distance. Some areas just don’t have that much within a few minutes’ drive — yet. Of course, with the development that will come in along 121 over the next few years, this will change on the west side.

Source: Point of interest data, Spatial Laser analysis

Are there enough places to eat? Certainly there are. If the whole metro area is put on a scale of 1-10, the central areas along Highway 75 score at least a 7 or 8.

Source: Point of interest data, Spatial Laser analysis

This gives you an idea of how we might answer the question of whether a city fits the bill for your new office. Doing your own corporate relocation or helping someone who is? We can help with the analysis.


Steven McCord

By Steven McCord

Steven is the co-founder and CEO of Spatial Laser, the company behind Locate Alpha. Steven also enjoys investing in single-family homes. He can be reached at info@locatealpha.com. Locate Alpha helps single-family home buyers find the perfect place to invest, in minutes, using detailed location data.

About Locate Alpha

We help real estate investors find the perfect place to buy a home or invest. Our flagship product, Locate Alpha, lets you explore the market and form a laser-focused investment strategy based on rich data.

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