MACY’S ARIZONA E-COMMERCE

Labor analytics

MACY’S ARIZONA E-COMMERCE

Fast-tracked schedule and 500 workers - no problem.

Summary

Acquired 36-acre site at approximately 75% of fair market value. A free option was negotiated to acquire additional land at below-market pricing.

Confidential incentive package was negotiated, consisting of infrastructure improvements, cash grants and permit fee waivers.

Aggressive research and due diligence ensured adequate time for facility construction to meet the start date for the new

OBJECTIVE

Find an existing building or site to accommodate a state-of-the-art 600,000 square foot automated distribution center for Macy’s Arizona expansion. The primary criteria for the project included:

  • Potential locations in California, Nevada, Arizona or Utah
  • A community to support a work force of 500 full-time associates growing to 900 during the peak holiday season (Sept.-Jan.)
  • A fast-track schedule with less than 18 months to deliver a fully-staffed and operational facility
  • Expansion to 1 million square feet
  • Requirement to own vs. lease

CHALLENGES

The geographic area for the search was extremely large. The unique facility requirements precluded acquisition of an existing building and demanded new construction. This mandated compression of long permitting and approval times to meet the rigid and aggressive schedule.

SOLUTION

Colliers Indsite® site selection services optimization model quickly identified all communities in the study area capable of meeting Macy’s Arizona need for a sizeable permanent labor force and very large seasonal labor requirement. Detailed operating cost, development cost and labor studies were completed on three finalist locations. Site due diligence (soils, environmental, utilities, etc.) and all pre- construction planning with local officials was initiated.

A comprehensive RFP was sent to candidate property owners and public officials in three different states. Only five months from project conception, the City of Goodyear was awarded the project.