4949 W. Buckeye Rd.
Phoenix, Arizona 85043
is a Wisconsin-based corrugated box manufacturer, with
23 operations across the United States.
was leasing 81,401 square feet in two separate facilities
in Phoenix & Tempe, AZ. This resulted in higher costs
for real estate and operations.
a new site that could generate greater revenue, while
plans included adding 20,000 SF of production/warehouse
space while remaining committed to reducing both real
estate and operating costs.
One lease was set
to expire on April 30th 2002, and the other on April 30th,
2003. Menasha wanted to ensure that an overlap in rental
payments did not occur.
Out of pocket expenditures
needed to be kept as close to zero as possible.
- Menasha hired Ross Brown Partners to assist
them with their real estate decision-making process, and
was able to achieve these impressive results.
- Consolidate both facilities under
one roof in a premises totaling approximately 100,000 SF.
This would eliminate redundancy and decrease transportation
- A demographic study located current
customer and employee base and also targeted future customer
base. This facilitated site selection and allowed Menasha
to target geographic area best suited for relocation.
- Ross Brown Partners conducted a comprehensive market
analysis in two separate geographic markets to create maximum
leverage for Menasha Packaging's lease negotiation. This
created both direct and indirect competition that led to
maximal cost savings for the tenant.
- Ross Brown Partners then structured a free rent period
at the new space so that there would be no overlap in rental
- A turnkey build-out would be negotiated
as part of the transaction to minimize out of pocket expenditure.
- New space was leased at 4949 W.
Buckeye Rd., Phoenix, AZ: a total of 94,080 square feet
for a term of seven years.
- The demographic study concluded
that Southwest Phoenix was the ideal sub-market for Menasha
given its existing customer base, target customer base,
and the type of operation Menasha was planning to operate.
- Overall occupancy costs were reduced
by 33%, which enabled Menasha to manufacture its product
at a lower price while increasing overall profitability.
- A significant free rent period was
negotiated allowing Menasha to relocate immediately while
not having to pay double rent.
- A turnkey build-out with zero out
of pocket expenditures was also agreed upon, enabling them
to put money back into their core business.
- State economic incentives were also
secured giving Menasha a $4,000 credit per new employee
they hired, no sales tax on any new equipment, and accelerated
depreciation on other machinery.