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CASE STUDY: National Retailer

Enabling the location strategy for a 1.2 Million SF E- Commerce Fulfillment center

Key Information

National Retailer

Columbus, Ohio

Topline

  • $300M Investment
  • $22.5M Annual Payroll
  • 1.2M SF Distribution Center
  • $4.18M Tax Credit (12yr, 1.542%)

Business Lines & Services

Opportunity


CBRE’s Industrial & Logistics team (led by William Wolf and Brian Bruzek) understood that the retailer was evaluating its supply chain strategy and industrial real estate. The department store company sought to partner with a leading real estate firm to not only pinpoint optimal locations but execute the real estate transaction as well. The challenge also involved locating a facility with access to a high density of transportation and warehouse skills to support the company’s long-term labor strategy. The company specifically needed a facility that could support 400 regular employees and up to 2,000 workers during the holiday season.

Solution & Outcome


When the retailer enlisted CBRE for its expertise in location strategy, Labor Analytics was engaged to factor in the company’s ability to hire seasonal employees. Using LABORPLAN, a proprietary workforce longevity analysis, the team determined that Columbus, OH was the only market that could support the retailer's permanent and seasonal needs. Despite the retailer's team’s inclination toward established supply chain markets in the Northeast, the analysis proved that even at an above average starting wage of $15.00/hour, those markets could not support the seasonal ramp-up and the retailer would be best positioned in Columbus. Additionally, the analysis showed the region had a high concentration of warehouse skills (nearly 25 percent higher than the U.S. average) while its labor rates and cost of living hovered closer to the national average.

For More Information

$name
William Wolf
Executive Vice President
Licensed: PA, NJ
+1 610 398 7175
+1 610 398 7815
Mark Seeley Headshot
Mark Seeley
Executive Vice President
Advisory & Transaction Services, Labor Analytics
+1 602 735 5230