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U.S. Cost Comparisonfor Greater Richmond, Va.

U.S. model

With 50 states, hundreds of cities, and thou-sands of communities, choosing where in the United States to locate a new or expanding business can be a challenge. Access to raw ma-terials and customers, transportation, telecom-munications, labor, and real estate are all critical factors in what makes a location the right one for a business. The Greater Richmond region offers many advantages to businesses looking to expand or relocate. We are not always the lowest cost location in every category, but as the numbers show, our high-quality business environment offers an exceptional value when compared to the competition.

This cost comparison provides a template for executives tasked with evaluating and com-paring start-up and annual operating costs in Richmond as well as several other cities in the United States. The following models represent

typical operating scenarios for three differ-ent business activities. The first comparison provides estimates for a typical office with 50 employees occupying 10,000 square feet of office space. The second comparison is tailored

to a distribution facility that employs 25 workers and occupies 80,000 square feet of office and warehouse space. The third comparison repre-sents a manufacturing facility with 50 employ-ees occupying 35,000 square feet of space.

Hello from the Richmond Region!

Greater Richmond is home to more than 60,000 businesses, with everything from Fortune 1000 companies to two-person start-ups. our strongest business clusters include:

Supply Chain Management

Health & Life Sciences

Corporate Headquarters Data Centers

Advanced Manufacturing

Finance & Insurance

Professional & Creative Services

Food & Beverage

Business Clusters

Assistance Available from the Partnership

n Custom research based on the company’s parameters and data requirements (workforce, business costs, transportation, suppliers, taxes, incentives)n Site location assistance and real estate toursn Structured itinerary that includes a com-munity overview n meetings with suppliers and professional

service providersn Introductions to government officials and community leaders n Public relations servicesn Relocation services for company employeesn Start-up services such as employee recruit-ment n existing business support through the Business First Greater Richmond program

The Greater Richmond Partnership, Inc. is the regional economic development group repre-senting the City of Richmond and the Counties of Chesterfield, Hanover and Henrico. We of-fer site location assistance and other services to domestic and foreign companies planning new or expanded facilities.

VCU Creative Services

PartnershiP servicesour free and totally confidential services include:

n Richmond is strategically located at the mid-point of the east Coast, less than 100 miles from Washington, d.C.n Richmond International Airport (RIC) pro-vides about 160 daily flights with connecting flights to destinations worldwide. Washington

dulles International Airport (IAd), one of the nation’s largest international airports, is only 120 miles from Richmond, with nearly 50 non-stop international flights n more than 55% of the nation’s consumers are within 750 miles

n AmTRAK provides passenger rail service with three stations in the metro arean The Richmond Region’s shippers are within 100 miles of the Port of Virginia at Hampton Roads, the 3rd largest container port on the U.S. east Coast

Notes: *The Illinois rate of 9.5% is the sum of a corporate income tax rate of 7% plus a replacement tax of 2.5% ** Percentage of federal gross income with modification

LocationCorporate

Income TaxSales Tax

Personal Income Tax

Right to Work State

Private Sector Union Membership

Richmond, VA 6.0% 5.3% 2.0% to 5.75% Yes 3.1%

Atlanta, GA 6.0% 8.0% 1.0% to 6.0% Yes 3.8%

Boston, MA 8.0% 6.3% 5.3% No 6.8%

Charlotte, NC 6.9% 7.3% 6.0% to 7.75% Yes 1.6%

Chicago, IL 9.5%* 9.8% 5%** No 10.0%

Los Angeles, CA 9.99% 6.34% 3.07% No 7.8%

Newark, NJ 9.0% 7.0% 1.4% to 8.97% No 8.7%

Philadelphia, PA 8.84% 9.0% 1.00% to 13.3% No 8.9%

Tax Rate Comparison

95

295

295

295

64

64

ChesterfieldAirport

1301

288

76

288

1

73

Henrico

Richmond

Hanover

Chesterfield

James River

85

95

Richmond InternationalAirport

HanoverAirport

150

301

H

Ai

895

R R

R R

R R

Port ofRichmond

R R

Average commute time is only 25 minutes

UPS & FedEx district hubs are located in the region

Four Interstates converge in the metro area, including 95, 85 & 64

Norfolk Southern & CSX provide rail

freight service

The James River connects Port of Richmond to the

Atlantic Ocean

Home to 10 Fortune 1000 headquarters & 150+

international firms

Transportation & Infrastructure

Richmond International Airport is second most efficient in N. America

Richmond, VA Boston, mA newARk, nj chARlotte, ncreal estate

Rent, Average Annual Asking ($/SF) $18.42 $30.69 $25.91 $22.32

Annual Cost - 10,000 SF Office $184,200 $306,900 $259,100 $223,200

Commercial Electric Rates (cents/kWh) 7.76 15.29 14.78 8.01

salariesAverage salaries per major occupational Group

Management Occupations $116,660 $130,470 $138,640 $122,160

Business and Financial Operations Occupations $69,970 $83,790 $80,080 $72,590

Office and Administrative Support Occupations $34,970 $42,610 $38,900 $35,120

Average salaries per occupation title

Chief Executives $198,060 $208,870 $206,620 $214,880

General and Operations Managers $122,190 $140,030 $163,240 $132,500

Human Resources Managers $116,650 $124,650 $145,950 $126,590

Human Resources Assistants $38,000 $49,040 $41,130 $36,900

Receptionists $27,510 $31,420 $29,340 $28,150

Executive Secretaries $48,740 $57,600 $61,720 $50,520

Computer Support Specialists $51,740 $63,610 $53,580 $51,810

Database Administrators $83,110 $84,040 $92,310 $90,540

Financial Analysts $82,020 $104,200 $88,754 $82,190

Sales Representatives $68,650 $80,230 $65,440 $67,300

Accountants and Auditors $69,900 $79,630 $87,530 $74,360

Claims Adjusters $60,710 $66,750 $73,540 $60,840

Purchasing Agents $65,280 $71,070 $72,660 $58,090



Annual Cost - 80,000 SF Distribution Facility $259,200 $440,800 $505,600 $288,800

Commercial Electric Rates (cents/kWh) 7.76 15.29 14.78 8.01


Transportation and Material Moving Occupations $32,190 $35,730 $36,360 $34,690


Transportation, Storage, and Distribution Managers $86,820 $93,490 $117,200 $94,330

First-Line Supervisors of Laborers $49,670 $47,020 $54,570 $46,250

First-Line Supervisors of Vehicle Operators $55,220 $60,370 $57,820 $54,370

Driver/Sales Workers $25,850 $32,440 $28,510 $30,910

Laborers $26,670 $31,810 $27,360 $27,590

Packers $26,700 $22,860 $21,200 $22,380

Conveyor Operators $35,485 $35,700 $32,760 $28,350

Receptionists $27,510 $31,420 $29,340 $28,150

comparison: 50-person Office

comparison: 25-person Distribution Facility

58% of population with some college or higher

Home to more than 60,000 businesses

Operating costs for an office facility are extremely competitive in the Richmond Region. Greater Richmond boasts a unique blend of business-friendly regulations, an af-fordable, high-quality lifestyle for workers and first-class executive amenities, making it an ideal office location. Based on the eight compared communities and the tables in this document, Richmond offers the lowest cost for office rent, electricity, unemployment tax and the lowest corporate income tax; second-lowest workers’ compensa-tion and housing costs. Virginia also ranks as the 4th best state in the country for business by Forbes.com.

Greater Richmond is strategically located at the center of the east Coast economic corridor, with more than 55% of the U.S. population within 750 miles of the area. Based on the eight compared communities, Richmond offers the lowest real estate and electric rates, sales and unemployment tax and ranks the lowest in terms of traffic delays; second-lowest workers’ compensation and building costs.

Building costs are 13% below the national average

AtlAntA, GA PhilAdelPhiA, PA chicAGo, il los AnGeles, cAreal estate

$20.45 $25.09 $28.60 $33.78 Rent, Average Annual Asking ($/SF)

$204,500 $250,900 $286,000 $337,800 Annual Cost - 10,000 SF Office

9.96 12.36 9.20 14.72 Commercial Electric Rates (cents/kWh)


$115,550 $133,880 $109,660 $123,790 Management Occupations

$73,290 $75,500 $74,750 $76,330 Business and Financial Operations Occupations

$35,140 $38,070 $37,040 $37,910 Office and Administrative Support Occupations


$198,910 $210,940 $174,300 $206,430 Chief Executives

$119,310 $140,790 $109,000 $127,920 General and Operations Managers

$115,160 $151,600 $103,050 $115,840 Human Resources Managers

$39,260 $38,830 $42,310 $42,400 Human Resources Assistants

$28,010 $28,290 $29,140 $29,050 Receptionists

$51,590 $58,300 $51,910 $57,610 Executive Secretaries

$51,420 $50,140 $52,520 $54,660 Computer Support Specialists

$84,110 $76,520 $80,770 $90,470 Database Administrators

$84,070 $81,330 $82,550 $105,830 Financial Analysts

$61,250 $74,220 $65,080 $61,790 Sales Representatives

$76,040 $78,160 $74,460 $78,090 Accountants and Auditors

$65,240 $64,240 $63,210 $64,670 Claims Adjusters

$63,020 $70,620 $62,820 $67,220 Purchasing Agents



$260,800 $316,800 $345,600 $595,200 Annual Cost - 80,000 SF Distribution Facility

9.96 12.36 9.20 14.72 Commercial Electric Rates (cents/kWh)


$37,430 $34,490 $35,460 $33,980 Transportation and Material Moving Occupations


$89,250 $105,440 $86,060 $90,780 Transportation, Storage, and Distribution Managers

$48,910 $55,180 $51,800 $48,310 First-Line Supervisors of Laborers

$56,020 $60,700 $61,260 $60,780 First-Line Supervisors of Vehicle Operators

$27,750 $24,660 $31,520 $30,440 Driver/Sales Workers

$26,440 $29,700 $26,460 $26,770 Laborers

$21,770 $24,760 $22,890 $21,490 Packers

$30,150 $38,850 $36,760 $34,580 Conveyor Operators

$28,010 $28,290 $29,140 $29,050 Receptionists

#1 state in the number of Tech workers, as a percent of private workers

The area draws labor from more than 40 localities

3rd lowest workers’ compensation tax rate in the U.S.

comparison: 50-person Office

comparison: 25-person Distribution Facility

Operating costs for an office facility are extremely competitive in the Richmond Region. Greater Richmond boasts a unique blend of business-friendly regulations, an af-fordable, high-quality lifestyle for workers and first-class executive amenities, making it an ideal office location. Based on the eight compared communities and the tables in this document, Richmond offers the lowest cost for office rent, electricity, unemployment tax and the lowest corporate income tax; second-lowest workers’ compensa-tion and housing costs. Virginia also ranks as the 4th best state in the country for business by Forbes.com.

Greater Richmond is strategically located at the center of the east Coast economic corridor, with more than 55% of the U.S. population within 750 miles of the area. Based on the eight compared communities, Richmond offers the lowest real estate and electric rates, sales and unemployment tax and ranks the lowest in terms of traffic delays; second-lowest workers’ compensation and building costs.

salary data is from the U.S. Department of Labor’s Bureau of Labor Statistics, May 2013 Metropolitan and Nonmetropolitan Area Occu-pational Employment and Wage Estimates, http://www.bls.gov.

distribution rental rates represent the average annual asking rent per square foot, quoted on a net basis of facilities greater than 10,000 square feet in each metropolitan area. Rates for all metro areas are from Jones Lang LaSalle, Industrial Statistics, Q3 2014 and based on “Warehousing & Distribution” except for Boston and Newark. Data for Boston and Newark is from the Industrial Snapshot Q3 2014. Data for Newark is based on Northern New Jersey.

office rental rates represent the average annual asking rent per

square foot and include all classes of office property. Rates for all metro areas are from Jones Lang LaSalle, Office Statistics, Q3 2014, www.joneslanglasalle.com. Data for Newark is based on the state of New Jersey.

manufacturing rental rates represent the average annual asking rent per square foot, quoted on a net basis of facilities greater than 10,000 square feet in each metropolitan area. Rates for all metro ar-eas are from Jones Lang LaSalle, Industrial Statistics, Q3 2014 and is based on “Manufacturing” except for Boston and Newark. Data for Boston and Newark is from the Industrial Snapshot Q3 2014. Data for Newark is based on Northern New Jersey.

commercial and industrial electric rates are from the “Edison Elec-tric Institute’s Typical Bills and Average Rates Report,” Summer 2014. Los Angeles rates reflect the state average.

Annual traffic delay per traveler data is from the Texas Trans-portation Institute’s 2012 Annual Urban Mobility Report, http://mobility.tamu.edu.

cost of living data is from the ACCRA Cost of Living Index, 2014 Quarter 2. The national average is 100.

Building costs data is from “RSMeans Building Construction Cost Data,” 2015, 73rd Annual Edition, and reflects City Cost Indexes where the national average is 100.

tax comparison chart sources by column:

The Corporate Income Tax and Personal Income Tax data is from the Tax Foundation. Sales Tax figures are from www.sale-tax.com. Right to work data is from the National Right to Work Legal Defense Foundation. Union membership data is from www.unionstats.com. All

Assumptions/Sources



Annual Cost - 35,000 SF Manufacturing Facility $122,500 $199,500 $210,000 $92,050

Industrial Electric Rates (cents/kWh) 6.05 14.44 13.4 6.21


Production Occupations $36,120 $40,350 $36,990 $34,070


Managers $115,720 $114,280 $126,600 $120,980

First-Line Supervisors of Production Workers $62,980 $71,530 $63,070 $57,940

Production Workers $30,440 $28,400 $23,710 $22,650

Inspectors and Testers $38,760 $43,790 $39,090 $35,280

Machinists $45,000 $48,930 $47,730 $38,050

Electronic Equipment Assemblers $33,430 $37,770 $31,610 $28,850

Tool and Die Makers $43,720 $57,040 $53,090 $47,190

Welders $41,320 $50,320 $44,420 $38,830

Executive Secretaries $48,740 $57,600 $61,720 $50,520

Mechanical Engineers $77,830 $90,730 $84,920 $79,360

Industrial Engineers $92,130 $93,830 $91,320 $80,560

comparison: 50-person Manufacturing FacilityVirginia is a right-to-work state that ranks among the top 10 states in labor productivity. Based on the eight compared communities, Richmond offers the lowest industrial electric rates, sales and unemployment tax; second-lowest workers’ compensation, private sector union membership rate and building costs.

Richmond, VA Boston, mA newARk, nj chARlotte, ncWorkers' Compensation (per $100 of payroll) $0.77 $0.76 $1.36 $1.19

Average Unemployment Tax per Employee $209 $630 $866 $441

Taxable Wage Base for Unemployment Insurance $8,000 $14,000 $31,500 $21,400 Average Annual Cost Paid by Employers for Health Premiums for Family Coverage $11,028 $12,854 $12,910 $10,338

Building cost index total 87.1 117.6 113 82.8

Materials 101.3 101.6 101.2 101.9

Installation 68.7 139.5 128.4 56.8Forbes ranking "Best States for Business and Careers" (1 being the best) 4 13 41 3

overall comparison: Business Climate Factors

Richmond, VA Boston, mA newARk, nj chARlotte, ncCost of Living Index (100=U.S. average) 100.2 136.7 124.7 95.2

Median Price for a New Home $258,000 $479,750 $487,566 $255,569

Annual Traffic Delay per Traveler (hours) 29 53 59 40

Overall Fitness Index Ranking (1 being the best) 21 9 24 27

overall comparison: Quality of Life Factors

AtlAntA, GA PhilAdelPhiA, PA chicAGo, il los AnGeles, cA$1.16 $1.51 $1.34 $1.85 Workers' Compensation (per $100 of payroll)

$224 $543 $594 $361 Average Unemployment Tax per Employee

$9,500 $8,750 $12,960 $7,000 Taxable Wage Base for Unemployment Insurance

$10,327 $12,002 $12,450 $12,173 Average Annual Cost Paid by Employers for Health Premiums for Family Coverage

87.5 114.5 117.2 107.2 Building cost index total

97.6 99.7 99.8 99.2 Materials

74.4 133.6 139.7 117.5 Installation

16 30 40 37 Forbes ranking "Best States for Business and Careers" (1 being the best)

taxes current as of January 2014.

median price for a new home is from the ACCRA Cost of Living In-dex, 2014 Quarter 2. The price is for the 2,400 sq.ft. living area new house, 8,000 sq.ft. lot, 4 bedrooms, 2 baths.

overall fitness index rankings are from the American College of Sports Medicine, American Fitness Index, 2013. The study ranks the health and community fitness status of the 50 largest metropolitan areas in the United States.

Union membership data is from the Union Membership and Cover-age Database at www.unionstats.com. The data reflects the percent-age of private sector workers who are union members within each metropolitan statistical area and was collected on Dec. 17, 2014. The database is maintained by Hirsch and Macpherson.

Right-to-work state data is from the National Right to Work Defense Fund at www.nrtw.org and was collected on April 10, 2014.

workers’ compensation data is from the Virginia Economic De-velopment Partnership’s Compare Virginia tool, available online at http://virginiascan.yesvirginia.org/compare/compareva.aspx. Data is presented at the state level. Workers’ compensation data reflects the net insurance costs per $100 of payroll in 2012 by State.

health premiums data is from the Virginia Economic Develop-ment Partnership’s Compare Virginia tool, available online at http://virginiascan.yesvirginia.org/compare/compareva.aspx. All data is presented at the state level. The average health premiums data re-flects the average contribution made by employers for family health premiums for 2013.

Average unemployment tax data is from the Virginia Economic De-

velopment Partnership’s Compare Virginia tool, available online at http://virginiascan.yesvirginia.org/compare/compareva.aspx. All data is presented at the state level. All data is from 2013.

taxable wage Base for Unemployment insurance data is from the Virginia Economic Development Partnership’s Compare Virginia tool. Available online at http://virginiascan.yesvirginia.org/compare/compareva.aspx. All data is presented at the state level. All data is from 2013.

Forbes ranking “Best states for Business and careers” - Forbes’ Best States ranking measures six vital categories for businesses: costs, labor supply, regulatory environment, current economic cli-mate, growth prospects and quality of life. It factors in 35 points of data to determine the ranks in the six main areas. Data is for 2014 and is available online at www.forbes.com.



$92,050 $136,500 $142,100 $260,400 Annual Cost - 35,000 SF Manufacturing Facility

6.29 10.86 7.34 10.61 Industrial Electric Rates (cents/kWh)


$32,110 $39,670 $34,630 $32,230 Production Occupations


$111,890 $117,010 $103,500 $130,160 Managers

$57,160 $65,940 $58,300 $57,600 First-Line Supervisors of Production Workers

$22,350 $27,920 $26,420 $23,500 Production Workers

$34,540 $46,670 $36,030 $38,500 Inspectors and Testers

$38,920 $45,220 $41,840 $38,040 Machinists

$32,850 $36,810 $32,540 $30,790 Electronic Equipment Assemblers

$53,480 $50,930 $51,140 $53,250 Tool and Die Makers

$36,950 $43,180 $37,630 $38,690 Welders

$51,590 $58,300 $51,910 $57,610 Executive Secretaries

$84,290 $86,770 $80,150 $98,330 Mechanical Engineers

$83,390 $88,450 $75,580 $98,450 Industrial Engineers

AtlAntA, GA PhilAdelPhiA, PA chicAGo, il los AnGeles, cA96.3 119.1 116.5 134 Cost of Living Index (100=U.S. average)

$284,766 $412,433 $436,871 $574,540 Median Price for a New Home

51 48 51 61 Annual Traffic Delay per Traveler (hours)

16 20 15 19 Overall Fitness Index Ranking (1 being the best)

comparison: 50-person Manufacturing FacilityVirginia is a right-to-work state that ranks among the top 10 states in labor productivity. Based on the eight compared communities, Richmond offers the lowest industrial electric rates, sales and unemployment tax; second-lowest workers’ compensation, private sector union membership rate and building costs.

overall comparison: Business Climate Factors

overall comparison: Quality of Life Factors

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901 East Byrd St | Suite 801 | Richmond, Virginia 23219 | 804 643 3227 | grpva.com

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Miami

Boston

Richmond

virginia: Best state for Businessn Virginia is headquarters to 32 Fortune 1000 firms and over 70 firms with annual revenue over $1 billionn The state’s 6% corporate income tax rate has not changed since 1972. It is the 6th lowest in the countryn Right-to-work state with moderate wages, low levels of union-ization, and Unemployment and Workers’ Compensation costs among the lowest in the U.S.n Ranks among the top 10 states in labor productivityn more than 500,000 students are enrolled in over 100 in-state institutions of higher education

greater richmond: center of commerce Richmond is the capital of Virginia, the center of commerce, government and academic endeavors:n Home to 10 Fortune 1000 headquartersn Population of nearly 1.3 millionn diverse local economyn located at the mid-point of the east Coast, less than 100 miles from Washington, d.C., with more than 50 percent of the nation’s consumers within a 750-mile radiusn excellent transportation network with rail, air, and port servicen Nearly 30 colleges and universities with almost 80,000 stu-dents and more than 14,000 degrees conferred annually

n GRPVA.com’s Custom Report Builder allows you to select items that you wish to include in a report downloadable in PdF.

n The Partnership has gathered and prepared various data sets for the Richmond mSA, according to the standards set forth by the International economic development Council. This information is available as an excel document.

Visit our website for more data and downloadable information: