Integrated Services Drive Build-to-Suit and New Efficiencies
Since the mid-1980s, Duluth, Georgia, has been home to Primerica, the largest independent financial services marketing company in North America with approximately 90,000 representatives. The company occupies 10 buildings under two separate leases with two different landlords. In 2007, the company worked with Cushman & Wakefield to explore options that could remedy both space and operational inefficiencies associated with the dispersed, multi-building headquarters. While the project was shelved during the economic downturn, in 2010, it came back to life when Citigroup, its former parent company, spun Primerica off as a separate entity in an Initial Public Offering. Among Primerica’s goals for the project were an increase in overall efficiencies, flexibility for growth of approximately 100 employees, a preference to stay close to the company's current location in Gwinnett County, Georgia, a redesign of the facilities to include a cafeteria and an expanded TV studio, as well as the incorporation of an efficient data center footprint.
Cushman & Wakefield brought together expertise from several disciplines to deliver an integrated approach on behalf of Primerica, including tenant representation professionals, transaction consulting professionals for financial analysis (including GAAP/FASB analysis), project management to oversee interior construction, and business incentives professionals. Our team analyzed alternatives to drive competitive pricing, including renewing in-place, alternative existing options, and build-to-suit solutions.
In September 2011, Primerica signed a 15-year lease for a 345,000-square-foot build-to-suit headquarters with Duke Realty Corp. The new location on a 31-acre site within a larger 120-acre development will enable Primerica to reduce square footage by 40,000 square feet, a reduction of more than 10%. Cushman & Wakefield, working closely with Primerica and Gwinnett County officials, was able to negotiate favorable incentives for a relocation to the new site. The incentive package included a property tax abatement on real and personal property as well as expedited permitting and planning processes to ease the development process. The project is expected to be delivered in the spring of 2013.