A Build-to-Suit and Consolidation Resulting in $7.1 Million in Savings for a Growing Company
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Test Rite group has an expanding client base and due to explosive growth, they needed to increase their footprint and own their next facility. Test Rite has 120,000 SF leased in two facilities. The growth projections over the next 10 years has them doubling their customer base. The new location requires the building delivery 1st Quarter 2020 with the following scope:
- Multi-Market search which included Nashville, Memphis, and Atlanta.
- 350,000 SF facility with 125 employees.
- 36’ clear height, cross dock configuration
- 45 Dock Doors
- Built-to-Suit to Purchase or locate an existing facility
- 20,000 SF of Office
- Sublease their 2 existing facilities
- ESFR Sprinkler system
Cresa created a detailed scope of work for the 350,000 SF build-to-suit project. The competitive environment that Cresa created in a very restricted area provided savings totaling $5.2 million for Test Rite.
Overview: Cresa was tasked with identifying buildings and sites in the geographic area for the 350,000 SF facility. After the due diligence was completed in the specified markets, there were no existing buildings that fit the requirement to purchase. Test Rite determined a site was needed for a build-to-suit.
Strategy: The Cresa team was able to identify four sites in the preferred geography. With the NE I-85 corridor of Atlanta being a tight labor market, and with the critical need to retain Test Rite’s workforce, Cresa identified this area to be the ideal location. Cresa created a detailed scope of work for the 350,000 SF project.
Negotiation: Cresa created a competitive environment in a very restricted area, which provided incredible savings totaling $5.2 million for Test Rite.
Subleases: Cresa subleased Test Rite’s two existing facilities at the asking rates. The two subleases resulted in another $1,900,000 in rental and expense savings.
Jim Bob and Michael were able to effectively assist Test Rite in accomplishing our goals of consolidating our real estate. Their solution resulted in Test Rite occupying a new build-to-suit distribution facility and subleasing our 2 existing facilities which resulted in millions of dollars in savings for our company. I highly recommend this team to handle complex industrial real estate transactions.Pam Turner | President