Fortune 100 Company
38,000,000 sq. ft.
Fortune 100 Company North America Portfolio
Sprouts Farmers Market is a healthy grocer offering fresh, natural and organic foods and vitamins. Headquartered in Phoenix since its start in 2002, Sprouts has been committed to providing customers with best-in-class service at an affordable price point. The company has grown to serve customers in 15 states with over 280 stores and continues to grow new stores at a 12% annual growth rate.
With its growth and as a result of going public in August of 2013, came the need to create a long-term plan for its corporate headquarters. Sprouts desired to have its own building with the identity of “healthy living for less” captured within the space.
An intensive search was conducted to vet all build to suit options as well as all existing buildings within the north Phoenix and north Scottsdale submarkets. Ultimately, Sprouts chose to lease an existing building in shell condition within the High Street development, a mixed-use center in North Phoenix. The corporate headquarters has four floors of collaborative workspace with a portion of the ground floor being used for a small retail grocery store. The metrics of the transaction were very favorable to Sprouts. The beginning rental rate was below market by 10%, the tenant improvement allowance was 150% of the allowance offered to other tenants and the rental abatement was twice the market concession. In addition, the landlord constructed a three story parking structure immediately adjacent to the building for the exclusive use of Sprouts employees.