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That's a for-lease property and Costco said they are negotiating on a purchase contract.
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That's a for-lease property and Costco said they are negotiating on a purchase contract.
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ah, gotcha... was just going off your screen grab from earlier today where it said that lease was preferred.
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
I know this is the wrong thread, but reading through that Twitter thread, the new Homeland Corporate Headquarters is not being built anymore?
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.
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.
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.
Site of consolidated Hertz Operations on NW Expressway
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!
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?
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.
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.
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.
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.)
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