Dearborn, MI
Although Carhartt was pleased to be experiencing steady growth over the years, this growth was not supported by a strong real estate strategy. Carhartt was experiencing inefficiencies in space utilization from two separate leases in the same complex. Questions also remained about how to accommodate future growth.
PMC helped Carhartt develop a long-term real estate strategy that minimized rent obligations while delivering an impressive, new headquarters that could meet current and future company needs.
Challenges
Inefficient Facility Use: Steady growth over past decades led to a disconnected plan for space utilization.
Divided Operations: Because Carhartt maintained multiple leased locations for corporate space, facility costs were high.
Future Needs: Carhartt is expecting continuing growth which will require additional space.
Lease Expiration: The existing lease was expiring in 14 months, requiring an aggressive timetable for evaluating economic implications of various alternatives, and ultimately constructing a new facility.
Solutions
PMC evaluated facility consolidation options: lease versus buy versus build alternatives, comparing capital and operational costs along with risk and schedule to meet Carhartt’s long-term needs.
This evaluation delivered a long-term strategy that maximized space use and minimized costs by analyzing annual space requirements.
Existing lease obligations were negotiated to coincide with completion of the new headquarters and to minimize rent obligations.
The impressive corporate facility greatly improved image.
Project Details
- Completion: 2003
- Cost: $12 million
- Size: 60,000 square feet
- Services: Strategic real estate planning, Owner representation, Site acquisition, Financial analysis, Lease negotiations, Design management, Construction oversight
- Results: Delivered tremendous facility cost savings by consolidating two 10-year leases into a single, owner occupied facility. Site infrastructure built to accommodate future expansion.
PMC Project Team
- Paul Rivetto — Strategic real estate planning, owner representation, design management, construction oversight
- Rick Pifer — Site acquisition, financial analysis, lease negotiations
Architect Contact Information
HarleyEllis Devereaux 248-262-1500