I would take advantage of local optimisation if you have the potential to do so. I don't believe it would harm your national rankings as the locally focused result and inclusion in the local search results 10 pack would surely be better targeted to your audience than a nationally focused SERP. So what you lose on national placement when you have a local result which is suitable for the SERP, you will make up with improved context.
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RE: Can local SEO harm national rankings?