A national consumer packaged goods client tasked CRA to lead the search and negotiation for a new Southern distribution hub in excess of 1 Million square feet to fill in a gap in their national network. CRA was tasked to find a best-in-class facility that delivered the most cost-effective solution to accommodate long-term growth opportunities and provide access to a strong labor force. As a result of recent acquisitions, CRA needed to provide a solution that could meet strict delivery timelines and building specs required by the client.
CRA’s team led metroplex wide search of existing and under construction properties that could meet the client’s timeline. Since the client was staffing the facility with their own labor, a decision was made to improve the selected building with a temperature-controlled warehouse to provide a first-class working environment for their team members. CRA was able to create a short list of buildings that could deliver storage capacity for current warehousing needs, as well as opportunity for future expansion growth, creating a competitive negotiation environment.
CRA worked with the client’s distribution and operations team to design building specs that allowed CRA to present an apples-to-apples comparison of short-listed building solutions. CRA was able to identify a solution with a lower land and construction cost basis relative to other spec buildings in the market, which provided the best overall economic opportunity, while putting them in a strategic distribution location. Working with a preferred general contractor, CRA and the client were able to manage timelines and costs to deliver all tenant improvements, including a fully conditioned warehouse, on time and on budget. This building provides the client with strategic network and staffing opportunities, including the ability to expand the facility another 145K square feet (for a total of approximately 1.24 million square feet). In addition, by delivering a fully conditioned warehouse for its team members, the client has seen overwhelming application submissions from the local market.