Success Stories

Mizuno USA

Braselton, GA
520,000 SF
Cresa Atlanta
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Client Objectives

Already a well-established leader in the sporting goods arena, during 2010-2013 Mizuno experienced unparalleled growth across all their product lines - but specifically in their running shoe, golf club manufacturing and apparel lines. This explosive growth forced them to look at how their existing facilities were being utilized as they began nearing capacity.

Challenge

Mizuno owned a 140,000 square foot flex building in the Peachtree Corners submarket which housed approximately 200 of their corporate staff in an office setting (~40,000 square feet) and the balance of the building was designed for manufacturing, assembly and distribution of their golf clubs. It became abundantly clear that this building was nearing the end of its useful life to house all of these functions. Mizuno needed to continue to hire new employees but did not have any place to put them. Further complicating things was that there were not enough parking spaces on the existing site to accommodate the current employees.

Mizuno also leased a 300,000 square foot distribution center roughly 15 miles away from the building they owned - which was not set to expire until 2018. The overall revenue growth of the company was having a similar impact on this facility. Based on their current growth path, they would be out of space in this facility in mid-2015. The only silver lining was that Mizuno had an option to terminate their lease in 2014.The additional challenge was they didn’t want to be any further from their HQ building than the I985 and I85. Supply for the 500,000 square foot plus building would be limited.

Planning

The Mizuno management team decided early on in the planning process that they wanted to maintain an independent headquarters building for their corporate staff. The desired outcome was to stay in their existing building - but only to the extent they could add 20,000 square feet of new office space to accommodate their anticipated growth, cosmetically overhaul the interior and exterior of the building to be more consistent and representative of their cutting edge products and identify a solution to the parking limitations on the site.

The objectives for a long term space solution for their golf club manufacturing division and the distribution center function were a little less clear - other than they wanted them under the same roof going forward within a defined area of the Northeast market.

Cresa Atlanta assembled an experienced team with a wide range of expertise in office, industrial, project management and design arenas. Through the course of numerous meetings with the management team to discuss budgets and timeline, one-on-one interviews with key employees to gain design input, consultation with architects and general contractors to conceptually design the space and establish a project budget.

Cresa Team Members

Results

Cresa identified a 520,000 square foot building just outside Mizuno's geographic parameters that was able to accommodate both the 100,000 square foot golf club manufacturing/assembly department and the 300,000 square foot distribution center. We also identified a Build to Suit site that was within the geographic area. Sites that could accommodate a 500,000 square foot building were limited.  As part of our negotiations and as a condition to enter into a new long term lease, we convinced the new owner to reimburse Mizuno for the Termination Fee which was paid to cancel the lease on the existing distribution center - thus eliminating the last three (3) years of lease obligation at no cost - which equated to a savings in excess of $4,100,000.00. Once the Build to Suit was negotiated and the lease details on the existing building were compared to the build to suit the existing building lease rate, concessions, and square footage phase in totaled roughly $6,000,000 dollars in savings.

In parallel with the negotiations of the facility to house the Golf Club Assembly/Manufacturing and Distribution Center, Cresa determined that Mizuno's objectives of renovating their existing Peachtree Corners facility could be realized. A way to create an additional 20,000 square feet of office space was identified.  A design concept (within Mizuno's budget) to enhance the interior and exterior of the building was achieved. A staging/sequence plan to complete the renovations while minimizing disruption within occupied space was created.  Through the help of outside engineering consultants, a solution to increase the parking capacity on the site was validated. By continuing to utilize this building to house its US Headquarters, Mizuno was able to avoid taking on unneeded lease expense - saving them $9,000,000-$12,000,000 over a ten (10) year period.

Cost Savings

The total project savings to Mizuno totaled over $22,000,000 dollars.

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