If 2 business are generating the same revenue / profits, would you value a business more (in terms of numbers) because they are located at a good business address? (psychology is in play here)
it's more depend on what kind of business you are running, like
but i think now a days your business growth is much more depend upon the word of mouth i.e. if someone suggest it and someone can be your friend, relative, your office colleague or even a newspaper or any user opinion poll also like the movies rating not all movies are enjoyable by all people in the world but before going to watch a film you do consider people's point of view and then you select your piece of treat ...
although if your business is giant in the industry then it certainly has a good impact like google do because they are the industry giant when it comes to search engine and look their offices ... I also say they have the best offices and the impact they have on user is that whatever they do people want to use their services even if it is not up to mark of the user and they take open suggestion/feedback to improve it and by the time they are finish with the testing phase the app/business become up to the users expectation [as they did with google+, and it saved a lot of money which people spent getting user opinion or you can say user/client testing] ...
but at the end business is more about offering services and incentive and continuously presenting it in way to be more user friendly ... it's more of psychological game and if you want to be best in it you have to study your playground, opponents and tools availble before you start playing the game ...
The answer is pretty simple; it depends on your clientele. And there's a few ways to figure out if this matters. First, do you know where your competitors are physically located? If you don't, and you know them relatively well, chances are customers won't care either. Second, find some way to get your current and prospective clients to indicate if they know or care where you are. As you're talking to them, try to drop a question like, "Do you know where we are?" and find out if they know - and see, when you talk to prospectives, whether they even ask. Frankly, how many people know where Google is, other than something vague like, "California?".
There are three main considerations for location, as far as I see. First, is there a reason to be physically located near your customers. This goes back to my points above; do they even care? Many IT functions can be done remotely, so it's all about cost and management preference at that customer. Second, are you somewhere where you can recruit the best talent? This has a direct effect on your product, obviously, and being in Podunk, IA means you aren't going to be getting the best people you can get. This doesn't mean just Silicon Valley; Boston, Philly, Austin, all have good reputations for IT talent. Third, how much are you willing to pay? You want to be in Manhattan or some spots in CA, you're going to pay. Is being near certain customers or having certain talent nearby worth the cost? Local taxes matter too - just see how many companies incorporate in Delaware. You'll have to take those factors into consideration.
Of course, outside considerations like whether you are a distributed company with lots of remote workers make a difference too - there are other things specific to your situation that can affect this. But in general, I think the above points cover a lot of the questions you'll have to answer to decide your location. Hope this helps!