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Project Outline
When Circuit City sought to sublease
its Chehalis, Washington, distribution center, the consumer
electronics retailer plugged into the GVA connection.
Although Fred Meyer, a division of national grocery retailer, The Kroger
Co., held a short-term sublease, the 175,000-square-foot facility
required a long-term tenant. To fill the upcoming vacancy, Circuit City
sent an RFP for leasing services to four national firms. Steven Klein,
of GVA Kidder Mathews in Portland, responded with Patricia Loveall, in
the firm’s Seattle office, and Vanessa Herzog, in the Tacoma office.
Together, they covered the three markets most likely to produce a viable
tenant.
Initially, Seattle-based tenants said the Circuit City warehouse was too
far south, while Portland-area prospects said it was too far north. The
property is at least seventy-five minutes from the closest major market,
in an area with little industrial activity; therefore, the GVA team
faced a steep challenge to persuade brokers to show their clients this
particular property.
Services Provided
How GVA Kidder Mathews
Added Value
Unable to change the property’s location, Klein and his colleagues
shifted their focus to businesses with distribution needs in both
markets.
First, the team renamed the property to the Chehalis Distribution
Center, which targeted a broader spectrum of space users. Next, to
further their marketing efforts, they created a website with detailed
information and virtual tours.
The team found a match in DHL, the world's leading global express
delivery and logistics company. With perfect timing, GVA Kidder Mathews
sealed the deal the day after Fred Meyer’s lease expiration. Circuit
City had expected to find a sublease within two years; fortunately, the
GVA team completed the assignment in less than ten months.
“To level the playing field, you need a differentiator,”
Klein said of Circuit City’s decision to work with GVA Kidder Mathews.
“Patricia, Vanessa and I were able to act as a national firm with a
strong local presence in three different markets to produce efficient
and effective results.”
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Chehalis Distribution Center
Chehalis, Washington |
