CASE STUDY
PetSmart
Corporate Headquarters
Phoenix, Arizona
Phoenix, Arizona
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PROBLEM The fastest growing pet supply company in the country had expanded their Store Support Group headquarters several times spanning multiple buildings. Growth by acquisitions also presented a challenge as they onboarded and consolidated the employees from various companies. The founders wanted to preserve the PetSmart culture as new employees joined the team. The company had purchased a 20-acre site and now needed to formulate the next steps to achieve their goals; doubling in size within the next couple of years and getting the land purchase off their balance sheet.
PROCESS Working with the various SSG department heads we analyzed the impact of growth for each department. Taking the number of employees for each function and how the employee complement changed at various thresholds allowed us to plan the facility for the current needs through the next 10 to 15 years.
SOLUTION The team, including architects and engineers, determined that a 186,000 square foot building developed on 15 acres of the 20-acre parcel could accommodate the projected store growth support staffing. Strategically placing the building surrounded by surface covered parking in lieu of a parking garage allowed the perfect site plan for doubling the project down the road. The highlighted area on the site plan is the original building. Two 4-story 89,000 square foot buildings and a parking garage were added to the site nearly 15 years later. Rose, working closely with PetSmart staff, the design team and the design-build developer, strategically analyzed and designed for the ambitious growth plans of this company allowing them to grow in place, doubling their square footage.
Additional services to complete the project included:
Rose became a trusted advisor and ostensibly their corporate real estate department for more than 3 years. She oversaw a national remodeling program rebranding the stores secured through acquisition, developed a national distribution and logistics strategy and managed the property administration department. Working with PetSmart through their transition from an entrepreneurial managed structure to a publicly traded corporation was very challenging and inspiring.
PROCESS Working with the various SSG department heads we analyzed the impact of growth for each department. Taking the number of employees for each function and how the employee complement changed at various thresholds allowed us to plan the facility for the current needs through the next 10 to 15 years.
SOLUTION The team, including architects and engineers, determined that a 186,000 square foot building developed on 15 acres of the 20-acre parcel could accommodate the projected store growth support staffing. Strategically placing the building surrounded by surface covered parking in lieu of a parking garage allowed the perfect site plan for doubling the project down the road. The highlighted area on the site plan is the original building. Two 4-story 89,000 square foot buildings and a parking garage were added to the site nearly 15 years later. Rose, working closely with PetSmart staff, the design team and the design-build developer, strategically analyzed and designed for the ambitious growth plans of this company allowing them to grow in place, doubling their square footage.
Additional services to complete the project included:
- Negotiated the sale of land into the development agreement as well as the leaseback of the project with the permanent financing entity.
- Prepared and issued an RFP for 3rd party foodservices and oversaw the development process.
- Prepared and issued an RFP for the outsourcing of property management and mailroom functions and coordinated the implementation.
- Prepared and issued an RFP for furniture acquisition and oversaw installation of offices and workstations to accommodate 538 employees, lobby, mailroom and corporate cafeteria.
- Developed and oversaw the move-coordination plan for 538 employees. Move was completed within 3 days.
Rose became a trusted advisor and ostensibly their corporate real estate department for more than 3 years. She oversaw a national remodeling program rebranding the stores secured through acquisition, developed a national distribution and logistics strategy and managed the property administration department. Working with PetSmart through their transition from an entrepreneurial managed structure to a publicly traded corporation was very challenging and inspiring.
“Rose did a tremendous job meeting the PetSmart headquarters’ financial and operational objectives. Rose structured a very creative real estate sale leaseback transaction and kept the design and developer teams on track – ahead of schedule. Rose even managed the move of 538 employees over a three-day weekend!”
- Chuck Hall, Former Vice President – Real Estate PetSmart
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