"To level the playing field, you need a differentiator," Klein said of Circuit City's decision to work with Kidder Mathews.
The firm was able to act nationally with a strong local presence in three different markets to produce efficient and effective results.
When Circuit City sought to sublease its distribution center in Chehalis, Washington, the consumer electronics retailer plugged into the Kidder Mathews connection.
Although Fred Meyer, a division of national grocery retailer, The Kroger Co., held a short-term sublease, the 175,000 SF facility required a long-term tenant. To fill the upcoming vacancy, Circuit City sent an RFP for leasing services to four national firms. Kidder Mathews covered the three markets of Seattle, Portland, and Tacoma, which were 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 75 minutes from the closest major market, in an area with little industrial activity. The Kidder Mathews team faced a steep challenge to persuade brokers to show their clients this particular property.
Unable to change the property's location, Kidder Mathews shifted the focus to businesses with distribution needs in both markets. First, the property was renamed to the Chehalis Distribution Center, which targeted a broader spectrum of space users. Next, to further marketing efforts, a website was created with detailed information and virtual tours.
Kidder Mathews found a match in DHL, the world's leading global express delivery and logistics company. With perfect timing, 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 team completed the assignment in less than ten months.
- Leasing Services
- Space Marketing Strategy/Implementation