Why Site Selection Is a Technical Decision
Site selection is not just about location and rent. A building that looks modern and affordable may have structural deficiencies, inadequate power supply, no fire protection, or regulatory gaps that create operational risk for years. Professional site selection requires evaluating at least 15 criteria — and knowing which are negotiable and which are deal-breakers.
The 15 Site Selection Criteria
| # | Criterion | MNC Expectation | Local Norm | Minimum Acceptable |
|---|---|---|---|---|
| 1 | Structural Adequacy | Structural report, code-compliant design | Trust the developer | Structural PE assessment |
| 2 | Fire & Life Safety | NFPA-compliant systems, fire licence | Extinguishers only | Detection + 2 exit stairs + fire licence |
| 3 | Electrical Safety | IEC-compliant, earthing tested | Functional power | Earth test certificate, RCD protection |
| 4 | Power Reliability | Dual feed + UPS + generator (N+1) | Generator only | Generator with ATS + fuel contract |
| 5 | HVAC Adequacy | Central plant, ASHRAE 62.1 ventilation | Split units | Adequate cooling + fresh air |
| 6 | Lifts | EN 81 compliant, maintained by OEM | Functional lifts | Annual safety inspection, maintained |
| 7 | Floor Loading | Certified capacity (kN/m²) | Standard construction | 2.5 kN/m² office, 5.0+ warehouse |
| 8 | Ceiling Height | ≥2.75m clear (office), ≥6m (warehouse) | 2.4-2.6m | ≥2.7m office, ≥5m warehouse |
| 9 | Floor Plate Efficiency | ≥70% NIA/GIA ratio | Not measured | ≥65% efficiency |
| 10 | Parking | 1:1000 sq ft minimum | Limited street parking | Adequate for staff + visitors |
| 11 | Accessibility | ADA/EN 17210 compliant | No provision | Ramp + accessible toilet minimum |
| 12 | Flood Risk | Above 100-year flood level | Not assessed | Historical flood data reviewed |
| 13 | Seismic Zone | BNBC 2020 zone-appropriate design | Older code or unknown | Confirm design code vintage |
| 14 | Regulatory Compliance | All permits current and verified | Partial permits | Occupancy certificate + fire licence |
| 15 | Lease Terms | 5-10yr, defined maintenance scope, escalation cap | 1-3yr, verbal agreements | Written lease, clear scope of responsibilities |
Deal-Breakers vs Negotiables
Non-Negotiable (Walk Away)
- No occupancy certificate or building approval
- Extra floors beyond approved design (structural overload risk)
- No fire exits (only one staircase or locked exit doors)
- Active structural distress — visible cracks in columns, significant deflection, water damage to structural elements
- No generator and unreliable grid power (>2 hours daily outage)
- History of flooding in the building
Negotiable (Fix Before or After Occupancy)
- Missing fire detection system — can be installed by tenant
- HVAC inadequacy — can supplement with additional units
- Electrical earthing not tested — test and remediate
- Accessibility deficiencies — ramp and accessible toilet can often be added
- Poor lighting — can be replaced
- No BMS — can install smart metering
Office Site Selection Scoring
| Category | Weight | What to Assess |
|---|---|---|
| Safety & Compliance | 30% | Structural report, fire systems, electrical safety, permits |
| Technical Adequacy | 25% | Power, HVAC, lifts, floor loading, ceiling height, efficiency |
| Location & Access | 20% | Commute, parking, public transport, neighbourhood, flood risk |
| Commercial Terms | 15% | Rent, tenure, escalation, fit-out contribution, maintenance scope |
| Expansion & Flexibility | 10% | Growth space, floor plate divisibility, sub-let rights |
Factory & Warehouse Additional Criteria
| Criterion | Factory | Warehouse |
|---|---|---|
| Clear height | ≥5m production, ≥7m storage | ≥8m, preferably ≥10m |
| Column spacing | ≥9m × 9m | ≥12m × 24m preferred |
| Floor loading | 5-10 kN/m² production | ≥5 kN/m², 30 kN/m² for racking |
| Power supply | HT connection (11kV/33kV) | LT may suffice |
| Gas supply | Often essential (Titas) | Rarely needed |
| ETP | Required for wet processes | Rarely needed |
| Loading docks | Drive-in or dock level | Cross-dock preferred |
| EPZ/SEZ | BEPZA/BEZA zone benefits | Consider if export-oriented |
| Labour zone | Proximity to workforce | Proximity to logistics hub |
Site Selection Process
- Requirements brief: Headcount, area, technical requirements, budget, location preferences, timeline
- Long list: 8-12 options from agents, direct search, referrals
- Desk screening: Eliminate based on location, size, budget, obvious red flags → shortlist of 4-6
- Site visits: Technical walk-through with checklist — 2 hours minimum per site
- Technical assessment: Structural, fire, electrical, HVAC evaluation of top 2-3 options
- Commercial negotiation: Terms, fit-out scope, maintenance responsibilities
- Management approval: Score comparison matrix, risk register, recommendation
- Lease execution and fit-out planning
Bangladesh-Specific Considerations
- RAJUK approval: Verify building has RAJUK-approved plan matching actual construction. Extra floors are common — and a structural risk.
- Fire licence: Issued by FSCD after inspection. Many commercial buildings operate without one. For MNC tenants, this is essential.
- Power: Dhaka grid reliability has improved but 2-4 hour daily load-shedding is still common outside premium areas. Generator is essential. Verify fuel supply contract.
- Flood zones: Dhaka has well-documented flood zones. Buildings on filled wetland (particularly Badda, Aftabnagar, parts of Uttara) face seasonal waterlogging. Check LGED flood maps.
- Seismic: Dhaka is in BNBC Seismic Zone 2 (Z=0.20). Verify buildings were designed to adequate seismic code — pre-2006 buildings likely used lower seismic factors.
- Traffic access: In Dhaka, commute time is often the dominant site selection criterion. Consider proximity to staff residential areas, not just prestige address.
References
- CBRE — Site Selection and Advisory Services
- JLL — Occupier Advisory and Site Selection
- ASTM E2018 — Property Condition Assessment Standard
- RICS — Property Measurement and Due Diligence Standards
- NFPA — Fire Protection Standards
- ASHRAE — HVAC Design Standards
- BNBC 2020 — Bangladesh National Building Code
- RAJUK Development Control Rules
Insights & Guidance
- Professional site selection evaluates at least 15 criteria — not just location and rent.
- Safety & compliance should carry 30% weight — it's the most common source of regret in building selection.
- Know your deal-breakers: no occupancy certificate, extra floors, no fire exits, active structural distress, chronic flooding — walk away.
- MNC expectations differ significantly from local norms — understand the gap and decide where your organisation sits.
- In Bangladesh, verify RAJUK approval, fire licence, generator capacity, and flood zone before anything else.
- Use a scoring matrix to compare options objectively — it transforms a subjective decision into a defensible recommendation.
A bad site selection decision locks an organisation into operational risk for years. The building you choose determines your safety exposure, energy costs, staff satisfaction, business continuity capability, and regulatory compliance status. Getting it right requires systematic evaluation — not just a property tour and a rent negotiation.
- Location bias — choosing a prestigious address with poor building quality over a better building in a less fashionable location.
- Rent-driven decisions — cheap rent often means missing fire systems, poor power, or structural questions.
- Incomplete assessment — visiting the lobby and conference room, not the electrical room, roof, and fire exits.
- Site selection scoring matrix with weighted criteria
- Technical assessment report for shortlisted buildings
- Compliance verification (permits, licences, certificates)
- Risk register for selected building
- Walk the building top to bottom: roof, plant room, electrical room, fire exits, basement, car park
- Check every staircase — are doors locked? Are exit signs lit? Are routes clear?
- Visit the generator room — is it maintained? Is there fuel?
- Can I see the RAJUK-approved building plan? Does the current building match it?
- What is the generator capacity and fuel autonomy?
- When was the last fire safety inspection by FSCD?
- Structural assessment — licensed structural engineer (PE) for any building over 5 floors or with visible distress.
- Fire assessment — fire protection engineer for any building over 10 floors or high-occupancy.
- Property condition — ASTM E2018 PCA assessor for acquisition due diligence.