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Thursday, January 14, 2016
Michaels to move artistry divisional HQ to Grapevine near DFW Airport
Michaels CEO Chuck Rubin and Nasdaq CEO Robert Greifeld celebrate Michaels’ entrance to the public market in Times Square. The framed art division is a big part of the retailer's business.
Irving-based craft retail giant Michaels Companies Inc. (Nasdaq: MIK) plans to move its framed art divisional headquarters to Grapevine near Dallas-Fort Worth International Airport, which will ultimately reduce the operation's real estate costs by about 20 percent.
Michaels has signed a long-term lease for 270,800 square feet of office and distribution space at Trade Center VI at International Commerce Park at 2450 Esters Blvd. in Grapevine.
In all, 225 to upwards of 300 employees will move into the new building upon its build-out in May.
The deal concludes an 18-month real estate search and will put the C-suite of Michaels' framed art division into new offices after more than 15 years at a facility in Coppell, said Damian Rivera, president of Dallas-based E. Smith Realty Partners' national account services.
"When they started to look at the location of their employees to identify the best spot for this facility, they found most of their labor was coming from south and north of Dallas-Fort Worth International Airport," Rivera told me. "They then decided to focus on DFW Airport as ground zero."
Rivera worked on the project alongside Jamie Jennings of Dallas-based Stream Realty in representing Michaels in the new lease. CBRE'sSteve Trese andTrammell Crow Co.'sJake Marks represented the landlord, Dallas-based Trammell Crow Co.
This facility is one of four such facilities in the United States and serves the framed art division's central region — as well as home to the division president and other decision makers, said Jennings, managing director at Stream Realty.
"In our meetings with Michaels' artistry division, we knew there was a high likelihood there would be a need for expansion in the future and so we were looking for a building that was well located, easily accessible and had room for possible expansion," he told me.
About 30,000 square feet of the facility will be devoted to corporate offices for the division. The remainder of the facility is devoted to light assembly and distribution to supply Michaels retail stores with framing materials.
Gordan Highlander is the project's general contractor, which is a preferred general contractor for Michaels and has worked alongside Trammell Crow Co. in the past. E. Smith Realty's David Stack is the project and construction manager of the project.
At completion, the new facility is expected to give Michaels a more efficient project and significantly reduce the company's real estate costs, Jennings said. The brokers estimate the company's operations will save 20 percent in real estate costs with the move.