Just want to say Costco's refinance mortgage service was great. Got quick quotes and got 3 calls. Used those to leverage my current service to give me what I wanted.

Overall very easy and painless. Great service!

Presentation to the Economic Development Trust today.

Costco rep said they are in the process of negotiating a location to buy and should be able to reveal in about 2 weeks.

Also said this site would be a call center for their travel and ecommerce business units and that 90% of the workload would be for ecommerce.

http://www.okctalk.com/images/pete/costco051120a.jpg


http://www.okctalk.com/images/pete/costco051120b.jpg


http://www.okctalk.com/images/pete/costco051120c.jpg


http://www.okctalk.com/images/pete/costco051120d.jpg

I have to wonder how typical it is for CostCo's normal business operations for them to reinvest in a community they are so newly present in with additional, non-store related jobs.

Also, imagine if we had gotten this announcement first and the stores later. "Yeah, we have a CostCo call center."

That is fabulous for OKC. A great get!

I have to wonder how typical it is for CostCo's normal business operations for them to reinvest in a community they are so newly present in with additional, non-store related jobs.

Also, imagine if we had gotten this announcement first and the stores later. "Yeah, we have a CostCo call center."

Steve’s article said they were stunned how good the workforce is here after opening the first warehouse.

You couldn’t never actually market the city this way but, “okc once you get here, hey this place is actually pretty cool”

Steve’s article said they were stunned how good the workforce is here after opening the first warehouse.

That's the PR line. You really think warehouse workers are much better here than anywhere else?

I suspect it has a lot to do with economic incentives; we gave them $1 million more than Tulsa for the warehouse so they knew straight away OKC was willing to give them money, and that's a huge part of their decision process (as outlined in their presentation).

That, and wages here are cheap. Note the 2 other finalists: Nevada and New Mexico.

This is what the chamber sent to real estate brokers last week.

Looking for 32,000SF; the old Hertz building near Quail Springs is 225,000SF.

http://www.okctalk.com/images/pete/costco050720c.jpg

Pete, the flyer says in the 10 county OKC region but if OKC is paying the incentive then it would need to be in OKC correct? Unless incentive is state funded?

Pete, the flyer says in the 10 county OKC region but if OKC is paying the incentive then it would need to be in OKC correct? Unless incentive is state funded?

Yes, I'm quite sure the site will be within OKC city limits because the Alliance for Economic Development is heavily involved, as is the chamber.

They can only get city incentives if they are actually in OKC. Surrounding communities can offer their own incentives but by all indications, this will be in Oklahoma City.

just browsing loopnet for fun, this would be my best guess (assuming costco would be willing to share a building with other tenants)...
https://www.loopnet.com/Listing/14400-Hertz-Quail-Springs-Pky-Oklahoma-City-OK/10796453/

^

That's a for-lease property and Costco said they are negotiating on a purchase contract.

^
ah, gotcha... was just going off your screen grab from earlier today where it said that lease was preferred.

That's the PR line. You really think warehouse workers are much better here than anywhere else?

I suspect it has a lot to do with economic incentives; we gave them $1 million more than Tulsa for the warehouse so they knew straight away OKC was willing to give them money, and that's a huge part of their decision process (as outlined in their presentation).

That, and wages here are cheap. Note the 2 other finalists: Nevada and New Mexico.

I’ve had employees in all 3. Okc has the best workforce by far.

Sounds like at the City Council meeting the site was described as being "within a 5-minute walk of public transit". Hm.

https://twitter.com/OKC_SPAN/status/1260211606174269442

just browsing loopnet for fun, this would be my best guess (assuming costco would be willing to share a building with other tenants)...
https://www.loopnet.com/Listing/14400-Hertz-Quail-Springs-Pky-Oklahoma-City-OK/10796453/

That first listing is tailor made for what Costco is looking for. Plus lots close by including Lifetime Fitness.

I know this is the wrong thread, but reading through that Twitter thread, the new Homeland Corporate Headquarters is not being built anymore?

I know this is the wrong thread, but reading through that Twitter thread, the new Homeland Corporate Headquarters is not being built anymore?

Correct, but they are still building the store at 36th & Lincoln.

They are literally across the street and decided they'd rather invest in their stores than new office space.

Costco planning to buy Hertz office building (https://www.okctalk.com/content.php?r=700-Costco-planning-to-buy-Hertz-office-building)

Hertz employees located in a company-owned office building near Quail Springs Mall were told today that Costco will be purchasing the property and they will need to be out by the end of June.


http://www.okctalk.com/images/pete/hertz051620a.jpg


Hertz recently filed for bankruptcy protection but months earlier had commenced consolidating employees to their property on NW Expressway with the expectation that all would be out this spring.

This would leave the 225,000 square foot, 4-story building completely vacant.

Costco had previously announced plans to open an operations center in Oklahoma City, and has been working with city and state officials on a deal which would include public incentives in exchange for creating over 1,000 new jobs.

Through the Greater Oklahoma City Chamber of Commerce, Costco had issued an alert to local commercial real estate brokers seeking 32,000 square feet of office space indicating they preferred to lease but would consider a purchase.

In a May 11th presentation to the Oklahoma City Economic Development Trust, a Costco spokesman said they were in the process of completing a purchase contract on a local building and that information would be public in approximately 2 weeks.

In that same meeting, Costco revealed that 90% of the workload at the center would be for their growing eCommerce business and the remainder would involve their travel services.

Costco also revealed that they had looked at New Mexico and Nevada before deciding on Oklahoma.

The average salary at the site would be just under $60,000 plus generous benefits.

By all reports, Costco's first warehouse in Oklahoma City has exceeded expectations. As we were first to report on February 18th, the Washington-based company is also planning a location in Moore (https://www.okctalk.com/content.php?r=692-Costco-planning-Moore-location).

Costco currently operates almost 800 warehouses worldwide.

The subject property contains a full basement, cafeteria, a gym, meeting rooms and a large number of cubicles and offices on all floors. Sources have indicated Costco will be buying all the current furniture in addition to the building and land.

The Hertz building is quite a bit larger than Costco's original target and there has been speculation the deep discounter may seek to grow well beyond 1,000 local employees.


http://www.okctalk.com/images/pete/hertz051620e.jpg


http://www.okctalk.com/images/pete/hertz051620c.jpg


http://www.okctalk.com/images/pete/hertz021520a.jpg
Site of consolidated Hertz Operations on NW Expressway

Wonder what office building they are planning to purchase to house this? Could this be what is going to take over the Hertz Quail Springs building? Hasn’t it been rumored to have a unknown buyer already? Would that potentially be worth approx the 25 million this mentions?
Just making a wild guess

Well I called this correctly!

So they are selling the nice new building and gilded the pig with new yellow paint (NW Expressway)?

So will they change the address to 14601 Costco Quail Springs Parkway?

Fantastic news and great reporting, Pete!

We need to start a petition to urge Hertz to repaint that ugly yellow roof line on NW Expressway. It's not even the official Hertz color, just compare the color on the logo with the garish yellow on the building...ugh!

We need to start a petition to urge Hertz to repaint that ugly yellow roof line on NW Expressway. It's not even the official Hertz color, just compare the color on the logo with the garish yellow on the building...ugh!

They literally just repainted it that color a few months ago, no way they're going to re-re-paint it. But I agree, it's hideous.

Reread Pete's article. They are buying the Quail springs Property. And downsizing all their employees to the Northwest Highway building.....no costco connection to it.

Does this increase likelihood of more than just the one other Costco location planned?

So they are selling the nice new building and gilded the pig with new yellow paint (NW Expressway)?

Probably one of the main reasons for this is that the NW Expressway bldg has their data center in it, and the other one is just offices. Much easier to relocate just cubicles/furniture than a data center. Also, guessing they'd have a harder time selling the gilded pig than the other bldg, since it's such an odd structure.

Probably one of the main reasons for this is that the NW Expressway bldg has their data center in it, and the other one is just offices. Much easier to relocate just cubicles/furniture than a data center. Also, guessing they'd have a harder time selling the gilded pig than the other bldg, since it's such an odd structure.

I'd say the data center was a huge factor. They just recently completed moving out of their old secondary data center at what used to be called the Reservations Center - now a Love's property. That was a huge undertaking that took forever and cost a fortune. There's no way they'd move that data center now.

Costco closed on the purchase of the Hertz building.

Paid $25.4 million.

Hertz still owns 32 acres of vacant land to the immediate west, but Costco now owns the empty parcel to the north of the building.

http://www.okctalk.com/images/pete/hertz051620c.jpg

There are some stops on the 005 bus line fairly close to there, so I imagine that probably counts for the "an approximate 5 minute walk from transit" claim at the City Council meeting.

Yea!

BTW didn't this building previously house AAA the early 2000's era? Seems like I interviewed for a job with AAA in March or April of 2010.

That building will look nice with a big COSTCO logo on it. Not being sarcastic, it makes the city look good when reputable, well-known companies have a sizeable and visible presence.

Yea!

BTW didn't this building previously house AAA the early 2000's era? Seems like I interviewed for a job with AAA in March or April of 2010.
My wife worked at the Data Center. Then moved to a leased space in a building in the triangle space of NW Exp & 63rd. That much I’m 100% sure. Now, if my memory is right while she was in the leased space Hertz built the Quail building. But I think they leased part of it out at first and later expanded to occupy it all. Maybe AAA leased part of it.

Yea!

BTW didn't this building previously house AAA the early 2000's era? Seems like I interviewed for a job with AAA in March or April of 2010.

Ward,
No, it was designed by FSB for Hertz and Hertz moved in and were the only tenants (unless they sub let some office space to AAA). but I never saw or heard anything about a renter.
C. T.

Seems there are a number of empty call centers on NW Expressway. I wonder how easily they could be repurposed to other uses (i.e., growing the green stuff, data centers, etc.)

I was at Costco yesterday and it looks like they are doing some kind of project on the north side of the building. I asked an employee and he said he knows what it is but doesn't know if he can tell me. Any insight?

I was at Costco yesterday and it looks like they are doing some kind of project on the north side of the building. I asked an employee and he said he knows what it is but doesn't know if he can tell me. Any insight?

New optical department.

A weird development...

Costco has stopped selling it's $20 sheet cakes that have become a mainstay for many parties, birthdays, graduations, etc.

They feed 50 people, and because large gatherings have been largely curtailed, they have just stopped making them for now.

A weird development...

Costco has stopped selling it's $20 sheet cakes that have become a mainstay for many parties, birthdays, graduations, etc.

They feed 50 people, and because large gatherings have been largely curtailed, they have just stopped making them for now.

Sounds responsible.

Yes, and I think they are continuing their smaller cakes. They are good!

It'll be a shame if they use this as an excuse to get people off of their $20 half sheets and onto the round cakes that serve about 10 people (for $10-15) as a permanent switch.

I'm sure it will be more profitable for them to sell the rounds.

I bet if you took a survey most people end up throwing a good amount of the sheet away. They only buy a sheet because of value and they are overly cautious about how much their guest will eat.

From the City Council agenda for Monday:


During negotiations with Costco for the Economic
Development Agreement, Costco discovered that an error had been made
by Costco in the wage information it presented to the State of Oklahoma
and to the Greater Oklahoma City Chamber of Commerce, the Trust and
City Council. Costco initially represented that it planned to add 1,044
new to market jobs with an annual average wage the first year of $44,606.
Staff was advised that this wage was mistakenly based on another
location's wages. Costco has revised its proposal by stating it will create
1,503 new to market full-time jobs, instead of the 1,044 originally
proposed, however, the first year annual wages will be reduced from
$44,606 to $38,299 and the jobs will be added over a five to seven year
period instead of three to five years. While the average annual wage of
these new jobs is being reduced to an estimated $38,309 for the first year,
the average annual wage will rise to $53,876 by the sixth year, resulting
in a total annual payroll of $80,975,000, which is $18,606,404 higher than
the prior top payroll estimate of $62,368,560.

^

As expected when discovered they were buying the large Hertz building, they are planning to employ more people than originally discussed, although at a lower average salary and won't reach full employment for what could be 7 years.

^

As expected when discovered they were buying the large Hertz building, they are planning to employ more people than originally discussed, although at a lower average salary and won't reach full employment for what could be 7 years.

Thats even better. Just using raw numbers and knowing hires will be staggered:

Old: 1044 x $44606 = $46.6m
New: 1503 x $38299 = $57.6m

I bet if you took a survey most people end up throwing a good amount of the sheet away. They only buy a sheet because of value and they are overly cautious about how much their guest will eat.


Thats even better. Just using raw numbers and knowing hires will be staggered:

Old: 1044 x $44606 = $46.6m
New: 1503 x $38299 = $57.6m

That's not bad starting pay considering OKC cost of living. This is a good catch.

That's not bad starting pay considering OKC cost of living. This is a good catch.

+1

Does Costco still have early hours for Seniors? Or is it a 10:00 AM opening for all (M-F)?

Does Costco still have early hours for Seniors? Or is it a 10:00 AM opening for all (M-F)?

Yes, they are still opening at 9AM for those over 60 Monday thru Friday.

Thanks Pete - do you also know, do all members need to be over 60, or can my daughter accompany me?

Thanks Pete - do you also know, do all members need to be over 60, or can my daughter accompany me?

I believe so.

Thanks Pete, appreciate what you do!

BE SAFE WEAR MASKS

I believe so.

Pete any word on when they will start on the new Costco in Moore. Im tired of driving to Costco on north side of town.

Pete any word on when they will start on the new Costco in Moore. Im tired of driving to Costco on north side of town.

I haven't heard anything further but Costco as a company is killing it so I have no reason to believe the Moore location won't be going forward.

Does Costco still have early hours for Seniors? Or is it a 10:00 AM opening for all (M-F)?

FYI - COSTCO just announced they will cut the senior hour, 9 to 10am to just Tuesdays and Thursdays starting July 13 for most stores.

Pete any word on when they will start on the new Costco in Moore. Im tired of driving to Costco on north side of town.

Why not just go to a Sams in your area? Aren't they both about the same type of store? I go to Sams once in a while but have never been to Costco but heard they are about the same.

Why not just go to a Sams in your area? Aren't they both about the same type of store? I go to Sams once in a while but have never been to Costco but heard they are about the same.

Costco is to Sam's what Target is to Walmart. They sell similar items, but the in-store experience and certain product offerings are very different.

Costco is to Sam's what Target is to Walmart. They sell similar items, but the in-store experience and certain product offerings are very different.

I've let my Costco membership expire. My experience has been that there isn't as big of difference in terms of quality for similar items. Each has their own unique items that can't be found in the other store, but nothing so compelling to drive me to either store over the other. I've also had nothing but good experiences with employees at both stores. In my mind, the Scan-and-Go checkout at Sam's is the biggest differentiation. That makes the shopping experience so much better. I admit that I'm also a bit biased because Sam's is so much closer to my home. But even if there were a Costco in a more convenient location to me, I would still prefer the checkout experience at Sam's. If there were a Costco closer to me, I might consider maintaining both memberships again to have options on the unique product offerings, but as it currently stands, the additional drive and checkout hassle aren't worth it to me.

I've let my Costco membership expire. My experience has been that there isn't as big of difference in terms of quality for similar items. Each has their own unique items that can't be found in the other store, but nothing so compelling to drive me to either store over the other. I've also had nothing but good experiences with employees at both stores. In my mind, the Scan-and-Go checkout at Sam's is the biggest differentiation. That makes the shopping experience so much better. I admit that I'm also a bit biased because Sam's is so much closer to my home. But even if there were a Costco in a more convenient location to me, I would still prefer the checkout experience at Sam's. If there were a Costco closer to me, I might consider maintaining both memberships again to have options on the unique product offerings, but as it currently stands, the additional drive and checkout hassle aren't worth it to me.

+1

i’ve also noticed the Sam’s have really stepped up their game since The Costco arrived. And the crowds are always lighter in the Sam’s. I canceled my Costco membership within the first month and used the $60 refund to buy ice cold, American beers at Sam’s.

Agree about Scan & Go. It's the best in-store shopping tool by far.

And even though Costco now has self-checkout, it's lame because there is no gun which means you have to haul all those big value packs out of your cart and wave them over the scanner. Plus, Sam's has way better hours and a much better website.

I love Costco but I live a mile from the Sam's at 39th & May and it's so easy and convenient, I should probably give up my Costco membership. I don't even buy much from them on-line.

I still hate Walmart but I have to admit that Sam's is damn good.