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Sep 21, 2007, 6:47 AM
http://seattlepi.nwsource.com/business/332549_starbucksrealestate21.html
Last updated September 20, 2007 8:09 p.m. PT
Starbucks to grow in Sodo
At least 1 million square feet of office space to be added
By CRAIG HARRIS
P-I REPORTER
Starbucks Corp., which opens on average seven new stores a day and has a sizable presence in the Sodo neighborhood, is looking to dramatically increase its corporate footprint there.
Starbucks declined to say how much additional real estate it needs for future growth. But sources with knowledge of the expansion told the Seattle P-I that Starbucks was looking at a minimum of an additional 1 million square feet, which would be added over a number of years.
Brandon Borrman, a Starbucks spokesman, said expanding the headquarters would provide space for additional staff members to support the company's growth. Functions at the corporate offices include administration, product design, marketing, legal, finance, human resources and public relations. Starbucks has about 3,600 employees at its main headquarters and 400 more workers in Pioneer Square.
Growth plans are under way as Starbucks last month said it opened a record 668 stores -- about one every three hours -- for its fiscal third quarter that ended July 1. The company plans to open 2,600 stores next year, an increase of 200 from this year. The company's long-term goal is to have 40,000 stores worldwide.
Through July 1, the most recent data available, Starbucks had 14,396 stores in 42 countries, with 10,295 in the U.S.
"We have a number of options for both existing and new real estate," said Craig Kinzer, whose Seattle-based Kinzer Real Estate Services has represented Starbucks for a dozen years. "All of these options are set up to give them flexibility to pull the trigger when necessary."
Kinzer, however, said there are no "hard dates" as to when the company would buy or lease more property near its headquarters just south of Safeco Field. He added that any "facility solutions" that could occur in the next year would not come open for a few years or until necessary.
Kinzer declined to disclose specific sites in Sodo being considered by Starbucks, which leases more than 1 million square feet for its headquarters from Nitze-Stagen at 2401 Utah Ave. S. The company last year bought two Pioneer Square properties, including one that's under construction, and leases space in another building in that area.
Talk of Starbucks' expanding its headquarters picked up steam last spring when Nitze-Stagen asked the City Council to change the zoning requirements for about six blocks around the Starbucks headquarters.
That plan, which is expected to be considered by the end of the year, would remove limits on office space for an area bounded by Colorado Avenue South, South Walker Street, First Avenue South and Forest Street.
"We are working with the city to make sure we have room for our expansion and our growth," Borrman said. "We are very conscious of the unique role Sodo has played in the city's history, and we want to make sure it's preserved."
Councilman Peter Steinbrueck, chairman of the Urban Development and Planning Committee, said the city is moving methodically on zoning changes but would "give due consideration to work with Starbucks and their goals" because "they are very important to the region."
Borrman declined to say how Starbucks would pay for any growth or how many more employees could come on board.
In its most recent quarterly earnings report, Starbucks posted a $158 million profit on $2.36 billion in revenue. It had a net income of $564 million on $7.8 billion in revenue in fiscal 2006.
However, the company's once high-flying stock has uncharacteristically languished in the past year, and a big expansion could give jitters to investors. In the past 12 months, the stock price has fallen 21 percent, and it closed Thursday at $27.49 on the Nasdaq stock market.
Last updated September 20, 2007 8:09 p.m. PT
Starbucks to grow in Sodo
At least 1 million square feet of office space to be added
By CRAIG HARRIS
P-I REPORTER
Starbucks Corp., which opens on average seven new stores a day and has a sizable presence in the Sodo neighborhood, is looking to dramatically increase its corporate footprint there.
Starbucks declined to say how much additional real estate it needs for future growth. But sources with knowledge of the expansion told the Seattle P-I that Starbucks was looking at a minimum of an additional 1 million square feet, which would be added over a number of years.
Brandon Borrman, a Starbucks spokesman, said expanding the headquarters would provide space for additional staff members to support the company's growth. Functions at the corporate offices include administration, product design, marketing, legal, finance, human resources and public relations. Starbucks has about 3,600 employees at its main headquarters and 400 more workers in Pioneer Square.
Growth plans are under way as Starbucks last month said it opened a record 668 stores -- about one every three hours -- for its fiscal third quarter that ended July 1. The company plans to open 2,600 stores next year, an increase of 200 from this year. The company's long-term goal is to have 40,000 stores worldwide.
Through July 1, the most recent data available, Starbucks had 14,396 stores in 42 countries, with 10,295 in the U.S.
"We have a number of options for both existing and new real estate," said Craig Kinzer, whose Seattle-based Kinzer Real Estate Services has represented Starbucks for a dozen years. "All of these options are set up to give them flexibility to pull the trigger when necessary."
Kinzer, however, said there are no "hard dates" as to when the company would buy or lease more property near its headquarters just south of Safeco Field. He added that any "facility solutions" that could occur in the next year would not come open for a few years or until necessary.
Kinzer declined to disclose specific sites in Sodo being considered by Starbucks, which leases more than 1 million square feet for its headquarters from Nitze-Stagen at 2401 Utah Ave. S. The company last year bought two Pioneer Square properties, including one that's under construction, and leases space in another building in that area.
Talk of Starbucks' expanding its headquarters picked up steam last spring when Nitze-Stagen asked the City Council to change the zoning requirements for about six blocks around the Starbucks headquarters.
That plan, which is expected to be considered by the end of the year, would remove limits on office space for an area bounded by Colorado Avenue South, South Walker Street, First Avenue South and Forest Street.
"We are working with the city to make sure we have room for our expansion and our growth," Borrman said. "We are very conscious of the unique role Sodo has played in the city's history, and we want to make sure it's preserved."
Councilman Peter Steinbrueck, chairman of the Urban Development and Planning Committee, said the city is moving methodically on zoning changes but would "give due consideration to work with Starbucks and their goals" because "they are very important to the region."
Borrman declined to say how Starbucks would pay for any growth or how many more employees could come on board.
In its most recent quarterly earnings report, Starbucks posted a $158 million profit on $2.36 billion in revenue. It had a net income of $564 million on $7.8 billion in revenue in fiscal 2006.
However, the company's once high-flying stock has uncharacteristically languished in the past year, and a big expansion could give jitters to investors. In the past 12 months, the stock price has fallen 21 percent, and it closed Thursday at $27.49 on the Nasdaq stock market.