Urban Functionality and Corporate Location Decisions After September 11, 2001-- Benefiting from the New York City Experience

Abstract

The September 11, 2001 (9/11) terrorist attacks in New York were a shocking act of terrorism on U.S. soil adding security as one, among many, influencing factor of urban functionality and future corporate location decision-making. This paper initially examines the relocation preferences of former World Trade Center complex tenants with more than 20,000 square feet, using New York’s attacks as the only major case of terrorism towards non-government U.S. office buildings. The paper further identifies the specific areas of the urban fabric impacted by terrorism along with the preparedness and prevention measures taken. In addition, the rising concerns of businesses in determining the safest, but highly profitable location, is outlined as well as some of the measures taken to fortify the selected locations. In an effort to highlight the possible threats towards office properties and the issues owners and tenants should be concerned, a table of threats is generated with their outcomes and occurrences around the world. Finally, the experience gained from this study allows the development of a theoretical cost benefit analysis for a site selection within Central Business District versus the suburbs, when security is viewed as the key factor of location.