Case Study: Terracon Headquarters Relocation
Adept Real Estate Advisory Services Keeps Tenant in Desired Location
THE PROJECT: Terracon Headquarters Relocation
THE CHALLENGE: Spurred by rapid employee growth, Terracon, an Olathe-based national engineering firm was outgrowing their existing headquarters location and sought to explore options for a new location that would accommodate its growing employee population. Timing was critical because Terracon desired to be in their new location within 18 months – an extremely tight schedule considering the size of the requirement.
THE RESEARCH: Copaken Brooks led Terracon through an exhaustive search of options focused on Olathe, where the company has been based since 2007. When the search showed that there were no existing buildings in the Olathe area that fit their needs, Terracon considered build-to-suit options or moving outside of their desired location. In total, Terracon considered 11 existing options in Kansas, four in Missouri, 2 build-to-suit options in Missouri, and 18 in Kansas. Within 6 months, the list of potential locations was narrowed down to staying in the company’s current location, two existing options in Kansas, one existing option in Missouri, or two build-to-suit options in Kansas.
THE STRATEGY: Copaken Brooks’ strategy focused intently on meeting the client’s needs and presenting options that met their size and location requirements. When sites were narrowed to a short-list, John Coe advised Terracon on their options, presenting a broad financial view as well as potential for incentives and necessary construction timeline.
THE RESULT: Once the landlord and developer proved that they would be able to meet the tight timeline, Terracon chose a build-to-suit option near their current location. To help make Terracon’s wish to stay in Olathe a reality, the city of Olathe approved a 10-year, 65 percent property tax abatement for the build-to-suite project, as well as industrial revenue bonds that allow for a sales tax exemption on construction-related materials.
“Speed and teamwork were critical to the success of this project. By exhausting all existing options and exploring build-to-suit sites, we were able to find a location that met all of Terracon’s criteria and will allow them to continue to expand in the future.”
-John Coe, SIOR, CCIM