Office Office - The Office Depot Merger - Part 2
Yesterday, on 11/12/13 which is a notable date based on the numbers alone, Office Depot named Roland Smith as its new CEO. Smith is a fomrer CEO of Wendy's and was most recently CEO of Delhaze America, a Belgian grocer which operates Food Lion. The big question remains where will the coprorate headqurters be?
Wendy's is located in Ohio while Delhaze is in NOrth Carolina. Smith stated in a news release:
“I fully understand that we need to make a headquarters decision quickly so that we can drive our integration efforts.”
Looking at the impact on the local office makrke, not only does the company occupy 625,000 square feet of office space in Boca Raton, it left a three-building 540,000 sf project in Delray Beach in 2008 to move into its new headquarters. The former campus was foreclsed upon and remains vacant. An additional 150,000 square foot call center in Boca hase been renovated and in being backfilled.
With a total office market of about 22 million square feet in Boca Raton and Delray Beach, current and former Office Depot space accounts for 5.6 percent of the overall market. Any downsizing by the company would ceratinly be felt in the market. The company's philanthropic efforts are also a huge plus for the community. The hope is that a bigger and stronger Office Depot remains in South Florida and that decision helps to attract more busniess to our area.
Regardless of the outcome, this remains one of the most significat stories of the year in the South Florida Commercial Real Estate Market. This is part 2 (part 1 is here) and we will continue to follow this story on the Brenner Real Estate Group Blog.
Office Depot has also set up a site covering the merger at http://officedepotmaxmerger.com/