retailtenant
CASE STUDY | RETAIL TENANT

 

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CASE STUDY - RETAIL TENANT REPRESENTATION CASE STUDY - OFFICE DEPOT

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THE ISSUE

In 1988 a new company in American retailing, Office Depot, began site location activity in Louisiana. Their goal was to become the dominant office supply company in the state.

THE ASSIGNMENT

To work with Office Depot’s corporate real estate personnel in the creation and implementation of plans for site selection of retail stores in the metropolitan markets in Louisiana. After each market was analyzed, the actual selection of store sites, contact of property owners or developers, initiating or soliciting proposals and negotiating the terms of letters of intent would be accomplished.

This process would take years and, in fact, would be ongoing indefinitely as changes occurred in Office Depot store sizes and changing markets. New Orleans, Baton Rouge, Lafayette, and Shreveport were targeted for the initial introduction of Office Depot stores.

THE SOLUTION

Since 1988, SRSA has been involved in sourcing over 30 Office Depots in Louisiana. In addition to the larger metropolitan markets, such as New Orleans, Baton Rouge, and Shreveport, sites have been secured in communities that include Houma, New Iberia and Ruston, Louisiana.

Over the years the product mix carried by an Office Depot unit has changed. Indeed, as home offices and home computers have become the norm for many Americans, the target customer has shifted from a major focus on small businesses to a mix of business and general consumer customers. Even the size of the average Office Depot store has been reinvented from a prototypical 30,000 square foot unit to a range of 15,000 to 22,000 square foot stores.

One of the most rewarding aspects of this assignment was the securing of a 13,000 square foot building on St. Charles Avenue near downtown New Orleans. Almost four years elapsed between the initiation of a site search and the opening of this store. Although it was, at the time it opened, one of the smallest stores in the chain, the St. Charles Avenue location had the largest opening day and opening week sales volumes in the history of Office Depot. This store has been an unprecedented “store of the year” for two successive years.

SRSA has represented Office Depot in Louisiana for over sixteen years. This experience is illustrative of the ongoing broker-client relationship that this company and its brokers have established and maintained.

Photo of Office Depot