Macy*s Backstage is Macy*s growing brand of retail stores dedicated to discount merchandise. Macy*s Backstage was in the process of growing its store count in the Midwestern United States and requested that CBRE conduct a thorough site search for a distribution center that could service its growing footprint. They needed CBRE to help it weigh location and cost of labor, real estate availability / cost and potential incentives, as well as performing a lease versus sale analysis for the project.
Bill Waxman and Mike Lowe immediately connected with CBRE’s local teams in each of the Midwest markets that were up for consideration, which included St. Louis, Indianapolis, Louisville, Cincinnati and Columbus. First task was to conduct real-time market studies to better understand asking rates, access to transportation and availability. The team considered the planned and existing retail locations for Macy*s Backstage, as well as its inbound merchandise supply chain structure. Bill and Mike worked with CBRE’s Labor Analytics group to conduct a brief labor study for the Midwestern United States. The team evaluated the existing labor supply’s ability to service Macy*s intended 600 employees, as well as the ability to hire temporary seasonal and surge help during peak retail seasons.
Macy*s Backstage ultimately landed on Columbus, Ohio, as the best location for a distribution facility based on numerous factors, including its labor supply and availability of real estate. The team partnered with Rick Trott, a veteran industrial professional in Columbus, and his team to leverage its in-market expertise. The collective team was able to negotiate a 673,920 square foot lease at a competitive rate with Duke/Cabot in Rickenbacker Industrial Park in Columbus, which has access to an excellent transportation network and labor pool. Macy*s Backstage also leveraged CBRE’s financial consulting group to perform a lease versus sale analysis, ultimately deciding on a long term lease for the building.
In addition to selecting a site for Macy*s Backstage in Columbus, Bill and Mike have helped Macy*s optimize its portfolio, including securing more than $6 million in savings through a sale-leaseback in Hawaii, completing a renewal for savings in Secaucus, NJ, and executing on a variety of other site searches, renewals and dispositions across the country. The team’s ability to leverage a Single Point of Contact with extensive knowledge of Macy*s needs while also tapping into a network of best-in-market local professionals across the country, has helped CBRE build advantage for Macy*s.