Flooring Manufacturer's Chicago Operations
Introduction
A leading French-based flooring manufacturer sought to centralize their Chicago operations, currently spread across two facilities, aiming to create a more efficient distribution setup and a modern, collaborative office environment. They needed a solution that would support domestic inventory expansion, streamline multiple U.S. manufacturing and distribution facilities, and foster workplace collaboration.
Challenge
Our client's existing Chicago facilities were inadequate for their evolving needs. They required a space that could accommodate growth, improve operational efficiency, and reduce costs in a competitive industrial market. Additionally, they needed to create an innovative office environment that would represent their global brand identity and support workforce expansion.
Solution
We leveraged our local market knowledge and operational expertise to secure a 190,000 square foot Class-A facility with right of first refusal on an additional 40,000 square feet. This new space offers 25% more area and 50% more cubic footage while reducing costs by 35% compared to potential rent renewal. We negotiated favorable terms, achieving a 20% reduction in total real estate costs in the first year and a 10% reduction over a 7-year term. By obtaining increased construction allowances, we provided our client with a cost-effective, spacious facility aligned with their operational strategy and brand identity, while offering flexibility for future growth and workspace customization.
