Client Served
challenge
Following completion of a network transportation study that established the greater Memphis metropolitan area as the most cost effective area to locate a distribution center, CRA was engaged to identify all available warehouse buildings in the Memphis metropolitan area that met the minimum search criteria for the consolidation of warehousing related to multiple acquisitions made by Post Consumer Brands.
Solution
CRA evaluated all warehousing options, rental rates, and economic incentives within a thirty (30) mile radius of Memphis, TN. This included options in the State of Mississippi, which is located approximately 20 miles south of Memphis, where the State was offering lucrative economic incentives to companies willing to cross the border. In the City of Byhalia, MS, CRA identified a very large building with contiguous land for expansion.
Benefit
CRA negotiated, for a building located in Byhalia, MS, a very low rental rate structure inclusive of significant free rent (full base rental and triple net rent) as well as an extremely large tenant improvement allowance for both base building improvements and discretionary use within the Premises. Post Consumer Brands also benefited from economic incentives which included reduced property taxes and waiver of Inventory Taxes.