Does Goodwill have deep pockets?

[bucktalk]

I recently moved a business out of a retail space due to the excessive expense. Therefore I'm shocked how many retails spaces (many of them relatively new) that Goodwill occupies. The retail locations must be very, very, very expensive OR donated spaces by retail property owners. However, my dealings with retails property owners has taught me that many of them do not deal with negotiations in the per foot prices.

I'm wondering if anyone knows if Goodwill has deep pockets to pay for so much retail space they now occupy??

[Pete]

They tend to go into large spaces that are hard to rent; usually a spot where a major tenant has vacated and the landlord has had a tough time finding a replacement.

I doubt they pay high rent anywhere.

[bucktalk]

This is true is some cases. But what I've noticed a lot of Goodwill stores are in brand new locations. Plus there are a few (two in Edmond) which are in very small spaces but newer building construction. I think saw where part of the new building being constructed on Danforth and west of Santa Fe will be a location for another Goodwill store. I find it pretty amazing how many locations they are establishing and can't help but wonder how much financial resources it takes for all that rent.

They tend to go into large spaces that are hard to rent; usually a spot where a major tenant has vacated and the landlord has had a tough time finding a replacement.

I doubt they pay high rent anywhere.

[SoonerDave]

This is true is some cases. But what I've noticed a lot of Goodwill stores are in brand new locations. Plus there are a few (two in Edmond) which are in very small spaces but newer building construction. I think saw where part of the new building being constructed on Danforth and west of Santa Fe will be a location for another Goodwill store. I find it pretty amazing how many locations they are establishing and can't help but wonder how much financial resources it takes for all that rent.

I have noticed *precisely* the same thing and agree 1000% that it seems *really* strange - they are *conspicuously* opening space in what seem to be increasingly new spaces. One such example is the donation center in a *brand new stripmall* along SW 104th...which is not even a mile south of their *existing* retail space at SW 89th and Penn...which is only a mile west of their *other* retail donation/sale store in the newly remodeled Brookwood Center at SW 89th and Western. And I *believe* there's a similar new center in Moore.

I get the older/strange space lease arrangements, but I don't get the idea they're getting a cheap ride on brand new space.

[kevinpate]

Donated space brings tax benefits to owners?

[bucktalk]

Donated space brings tax benefits to owners?

I would be shocked beyond belief to think that many retail property owners would donate so much space. Shocked. In my years of business rarely, rarely are they interested in donating their spaces. They have too much investment typically to provide donated space. What has caught my eye with Goodwill is how much of the spaces they establishing are in NEW or NEWER retail space. Bottom line is I wonder how much money Goodwill has to operate? I'm clueless to know what financial accountability they have to abide by....if any?

[RustytheBailiff]

I agree that about half of their local spaces are older harder to rent sites - like the 39th and Penn location, or the one on South 89th and Western--but they also have some built to order space - MacAurthur and a little south of 63rd, the one at 164th and Penn and they just opened one at South 8th street and Eastern Ave in Moore. It looks like the Parent Company, Goodwill International has about $24 Million in net assets (Non-profit talk for net worth or equity) Their financial and tax returns can be found here: http://www.goodwill.org/annual-report/

On the local level it looks they cleared about a Million Dollars in 2013 and $650,000 in 2014. They do not list their net assets but do show their annual income statements. They say that the metro area is underserved and are trying to catch up - hence the additional stores.

[bluedogok]

I did Goodwill stores in Austin for Goodwill of Central Texas when I lived there, they were moving towards buying properties and building new buildings. We did a new store in Lakeway that was a prototype and it was a very cost effective build even with the Lakeway design requirements. The way they acquired the property was usually through a property manager and they carried the property/construction cost on a build to suit for a term and then the property would transfer to Goodwill of Central Texas at the end of the contract.

Goodwill regions are franchises, the one in OKC has nothing to do with the one in Austin other than having the same name and paying the same Goodwill mothership franchise fees. They are all separate entities. We had done work for Heart of Texas Goodwill (Waco area) and were going after work with Goodwill of San Antonio.

[Bill Robertson]

There's one in a brand new space on MacArthur just south of Memorial and one just west of The Garage and Marco's Pizza on 122 & Rockwell. Those spaces can't be too cheap.

[ctchandler]

One thing that comes to mind is what the GW collection facilities are doing. They need donated "Things" and where are there more "Things" available? In the nicer areas. I have visited their center and it is not fancy or in a great location (316 S Blackwelder). It's where they train people in various skills. I was working for Hertz and they had provided computer terminals (hooked into our mainframe at our data center) to teach computer skills. You might want to search for the site that provides information about charitable organizations, such as what percentage of their donations are spent on administration versus needy people.
C. T.

[Bill Robertson]

My wife brought up the nicer stuff in nicer areas point. But what does brand new 1000 sq ft retail space lease for at MacArthur & Memorial? I have no idea but I bet it would take a lot of nicer stuff to pay the rent.

[ctchandler]

My wife brought up the nicer stuff in nicer areas point. But what does brand new 1000 sq ft retail space lease for at MacArthur & Memorial? I have no idea but I bet it would take a lot of nicer stuff to pay the rent.

SoonerSoftail,
It's volume, not necessarily "nicer stuff". The folks in lower income areas don't have a lot to donate. The MacArthur and Memorial location has a lot of traffic going by and I might see it and it would remind me to box up some things to bring to them.
Heck, I don't know, just my thoughts.
C. T.

[rtz]

The CEO apparently makes over half a million a year.

https://wikipedia.org/wiki/Goodwill_Industries

I'd like to know more about these "bales" of clothing. Who makes them and where. He has another video of the clothing bales down in Columbia if I remember right.



That's where the donations should be going to. Ever wonder why those stores are so busy? People buy all that stuff and either sell it on eBay, at a garage sale, or at the flea market. Look how busy the GW store at Britton and May is all the time.


edit

Here is the other video:

[bluedogok]

The CEO apparently makes over half a million a year.

https://en.m.wikipedia.org/wiki/Goodwill_Industries

I'd like to know more about these "bales" of clothing. Who makes them and where. He has another video of the clothing bales down in Columbia if I remember right.

That is Goodwill corporate which is a completely separate entity than any of the franchises, the revenue that corporate receives is the franchise fees from the affiliates.

We did a clearance and training/jobs center in Austin, clothing is sold by the pound there and what doesn't sell gets bundled and shipped out eventually.