Corporate headquarters sale-disposition with short term leaseback

Client
  • CE North America
Space
  • 50,000 sq. ft.
Industry
  • Consumer Products, Houseware/Appliances
Locations
  • Miami
  • Memphis
Services Provided
  • Location Strategy & Economic Incentives
  • Transaction Management
Cresa Team
  • Jeff Hartsook

Client Objectives

As part of their new business plan, CE North America wanted to implement a dropship strategy that would allow the company to offer customers products without CE having to purchase the items. This strategy meant a cost-savings for the company who would no longer need to dedicate as much money to warehouse space to store its inventory. As a result, CE sought to relocate its corporate headquarters in Miami to a more appropriately sized facility in Memphis, TN.

For their new location, CE was looking for a facility in a healthy, centrally located industrial submarket. They engaged Cresa’s Miami team to help:

  • offload the former HQ;
  • negotiate a short-term leaseback with the Miami property’s new landlord in order to implement an effective relocation strategy for servicing its distribution channels; and
  • create a marketing plan that would both retain local Miami employees and attract skilled Memphis talent.

Results

CE North America was able to execute a sale-leaseback option at its former HQ; the new owner allowed the company to remain on the property for s short period as a tenant. This granted CE more than enough time to implement its relocation strategy and move its distribution center to a central, industrial location in Memphis.

In the end, the combination relocation and sale-leaseback saved CE over 60% in rental costs and centralized its U.S. distribution network.

Have a problem with no real solution?

Contact Us