2007 Buildings Census: Corporate Real Estate Departments

Sept. 1, 2007
Facilities departments in corporations, responsible for the management of company-owned and leased buildings
Numbers in parenthesis refer to square feet in millions.

Wal-Mart Stores Inc. (757.6)
Bentonville, AR
(479) 273-4000
Wal-Mart operates more than 4,000 facilities in the United States (and 2,700 more in Argentina, Brazil, Canada, China, Costa Rica, El Salvador, Guatemala, Honduras, Japan, Mexico, Nicaragua, Puerto Rico, and the United Kingdom). Its 2,250 Supercenters make up a large part of those 4,000 facilities. This big-box retailer is reducing spending on new stores from 20 percent in 2006 to about 4 percent this year, and is reducing the number of new Supercenters opened by 35 percent (or about 70 stores). Overall, Wal-Mart will open 190 to 200 stores in 2007 and about 170 Supercenters annually thereafter. The company is in the midst of a big remodeling push – 1,800 stores were slated for a facelift by July 2007. Upgraded amenities include mock-hardwood floors, wider aisles, and nicer bathrooms. Supercenters average approximately 187,000 square feet in size. Discount Stores, which average approximately 102,000 square feet, offer a wide selection of general merchandise and a limited variety of food products. Neighborhood Markets, which average around 42,000 square feet, offer a full-line supermarket with a limited assortment of general merchandise. In McKinney, TX, and Aurora, CO, Wal-Mart has created two shining examples of the way building owners, engineers, architects, contractors, and landscape designers can work together to create stores that save energy, conserve natural resources, and reduce pollution. These stores are living laboratories, testing experimental technologies and products. Also, as part of its 21st-century leadership plan, designing stores to best fit the community they’re a part of is something that Wal-Mart is heavily focused on.
The Home Depot Inc.

Atlanta, GA
(800) 430-3376
As the world’s largest home-improvement chain, The Home Depot stores average approximately 105,000 square feet. As of the end of FY06, the company had 2,147 The Home Depot stores located throughout the United States (including the territories of Puerto Rico and the Virgin Islands), Canada, China, and Mexico. In addition, at the end of FY06, the company operated 34 EXPO Design Center stores (in Arizona, California, Florida, Georgia, Illinois, Maryland, Massachusetts, Missouri, New Jersey, New York, Tennessee, Texas, and Virginia), 11 The Home Depot Landscape Supply stores (located in Georgia and Texas), and two The Home Depot Floor stores (located in Florida and Texas). Between 300 and 400 new The Home Depot stores are planned by 2010.During FY06, the company opened 86 new U.S. stores, including eight relocations. Of its 2,147 retail stores, approximately 87 percent are owned (including those owned subject to a ground lease), consisting of approximately 196 million square feet, and approximately 13 percent are leased, consisting of approximately 29.3 million square feet. In recent years, The Home Depot has increased the relative percentage of new stores that are owned.

Lowe’s Cos. Inc.

Mooresville, NC
(704) 758-1000
Lowe’s Cos. has evolved from a regional hardware store operator into a nationwide chain of home-improvement superstores. As the No. 2 U.S. home-improvement chain, Lowe’s has more than 1,380 superstores in 49 states and has announced plans to expand into Canada this year (6 to 10 stores in the Toronto market in 2007). The company plans to open more than 150 stores in 2007 after adding 155 locations in 2006 (151 new and four relocated) as part of its expansion strategy. About 20 percent of the new stores that Lowe’s plans to open will be smaller stores in rural markets. As of Feb. 2, 2007, Lowe’s operated 1,385 stores, with 157 million square feet of retail selling space. Moving forward, new Lowe’s stores will be one of two primary prototypes: a 117,000-square-foot store for large markets or a 94,000-square-foot store to serve smaller markets. In FY07, the company estimates that approximately 80 percent of its growth will be comprised of 117,000-square-foot stores in larger markets; approximately 20 percent of its growth will be comprised of 94,000-square-foot stores in smaller markets.

Macy’s Inc.

Cincinnati, OH
(800) 261-5385
The nation’s No. 1 department-store chain has adopted the name of its most famous brand: Macy’s. Macy’s Inc. (formerly Federated Department Stores) operates more than 858 stores nationwide. Its name change comes after its acquisition of May Department Stores in 2005. The retail giant operates seven regional divisions: Macy’s East, Macy’s Florida, Macy’s Midwest, Macy’s North, Macy’s Northwest, Macy’s South, and Macy’s West, and the upscale Bloomingdale’s chain. As of Feb. 3, 2007, square footage totals equal approximately 156.4 million. Of its 858 stores, 463 are owned, 273 are leased, and 122 stores are operated under arrangements where the company owns the building and leases the land.


Cincinnati, OH
(513) 762-4000
Kroger is the nation’s No. 1 pure grocery chain. The company operates about 3,650 stores, including nearly 2,470 supermarkets and multi-department stores, under 24 banners in 31 states. It also runs about 780 convenience stores under names such as Quik Stop and Kwik Shop. In total, Kroger occupies 142 million square feet of space.

The Boeing Co.

Chicago, IL
(312) 544-2000
The world’s largest aerospace company also holds the title of the No. 2 maker of larger commercial jets behind Airbus and the No. 2 defense contractor behind Lockheed Martin. It operates two major business segments: Commercial Airplanes and Integrated Defense Systems (IDS). Total, Boeing occupies approximately 87 million square feet of floorspace as of Dec. 31, 2006, for manufacturing, warehousing, engineering, administration, and other productive uses.

Safeway Inc. (80.8)
Pleasanton, CA
(925) 467-3000
Safeway’s average store size is approximately 46,000 square feet. The organization determines the size of a new store based on a number of considerations, including the needs of the community, the location and site plan, and the estimated return on capital invested. Safeway’s new store format, called the “Lifestyle” store, is typically 55,000 square feet, but can vary depending on the factors stated above. They feature an earth-toned décor package that is warm and inviting, with special lighting to highlight products and departments, custom flooring, and unique display features. Safeway operates 1,761 stores (251 are less than 30,000 square feet, 758 are between 30,000 and 50,000 square feet, and 752 are more than 50,000 square feet). At year-end 2006, Safeway owned approximately 40 percent of its stores and leased the remaining 60 percent.

Whirlpool Corp.

Benton Harbor, MI
(269) 923-5000
Whirlpool manufactures and distributes some of the most-recognized names in appliances – Admiral, Amana, Jenn-Air, Maytag, KitchenAid, Bauknecht, Roper, Speed Queen, Whirlpool, Kenmore, and Sears. Whirlpool occupies a total of approximately 78.7 million square feet devoted to manufacturing, service, administrative offices, warehouse, distribution, and sales space. Over 41.2 million square feet of this space is occupied under lease. 

Walgreen Co.

Deerfield, IL
(847) 914-2500
Walgreen Co. owns approximately 18 percent of its retail stores. The company has an aggressive expansion program in place, adding new stores and remodeling and relocating existing stores. This past year, net retail selling space increased from 55.2 million square feet to 60.6 million square feet. Approximately 44.3 percent of company stores have been opened or remodeled during the past 5 years. The company’s retail drugstore operations are supported by 13 major distribution centers (with a total of approximately 8.1 million square feet of space in all distribution centers, of which 6.3 million square feet is owned). Two new distribution centers are planned in Anderson, SC, and Windsor, CT. There are 17 principal office facilities containing approximately 1.9 million square feet (approximately 1.7 million square feet is owned and the remainder is leased). The company operates three mail-service facilities containing approximately 252,000 square feet (approximately 133,000 square feet is owned and the remainder is leased). The company also owns 17 strip shopping malls containing approximately 605,000 square feet (approximately 442,000 square feet is leased to others). The company expects to increase its store count by about 500 outlets this year. Walgreen’s goal is to have more than 7,000 stores by 2010.

CVS/Caremark Corp.

Woonsocket, RI
(888) 607-4287
CVS’ retail pharmacy business includes 6,150 retail drugstores. The retail drugstores are located in 40 states and the District of Columbia operating under the CVS® or CVS/pharmacy® name. Existing stores range from approximately 8,000 to 18,000 square feet, although most new stores range from approximately 10,000 to 13,000 square feet. CVS operates 146 retail healthcare clinics in 18 states under the MinuteClinic® name (129 are located within CVS retail drugstores). CVS operates 52 specialty pharmacies under the PharmaCare Management Services and PharmaCare Pharmacy® name, located in 22 states and the District of Columbia. Specialty pharmacy stores average 2,000 square feet in size. The organization owns approximately 6 percent of its 6,202 retail and specialty pharmacy drugstores. Net selling space for retail and specialty pharmacy drugstores increased by 23.3 percent to 55.5 million square feet this year. More than half of its store base has been opened or significantly remodeled within the last 5 years. The company also owns six distribution centers located in Alabama, California, Rhode Island, South Carolina, Tennessee, and Texas; it leases eight additional facilities located in Florida, Indiana, New Jersey, Michigan, Pennsylvania, Texas, and Virginia. The 14 distribution centers total approximately 9.7 million square feet. In 2007, CVS plans to open 100 new drugstores and add up to 300 MinuteClinic locations. Acquired by CVS in 2006, Minneapolis-based MinuteClinic operates health clinics inside retail stores.

Costco Wholesale Corp.

Issaquah, WA
(425) 313-8100
Costco’s typical warehouse format averages approximately 140,000 square feet in size. Floorplans are designed for economy and efficiency in the use of selling space, the handling of merchandise, and the control of inventory. At the end of FY06, its warehouses contained approximately 64.2 million square feet of operating floorspace (50.7 million in the United States, 9.1 million in Canada, and 4.4 million in other international locations, excluding Mexico). Its executive offices occupy approximately 395,000 square feet. Costco opened 25 new clubs in FY06. In 2007, up to 35 new warehouses are planned for the United States and Canada. By 2017, the company envisions as many as 1,000 warehouses worldwide.

Hewlett-Packard Co.

Palo Alto, CA
(650) 857-1501
Since Hewlett-Packard’s $19 billion acquisition of Compaq in 2002, the company continues to integrate its operations. Now consisting of seven business units – Enterprise Storage and Servers (ESS), HP Services (HPS), Software, the Personal Systems Group (PSG), the Imaging and Printing Group (IPG), HP Financial Services (HPFS), and Corporate Investments – HP owns or leases approximately 64 million square feet. About 12 million square feet are dedicated to sales/support operations. It owns 42 percent of the space used for sales and support activities, and leases the remaining 58 percent. The company serves more than 1 billion customers in more than 170 countries on six continents.

Kohl’s Corp.

Menomonee Falls, WI
(262) 703-7000
As of Feb. 3, 2007, Kohl’s operated 817 stores in 45 states. The company’s stores are located in strip shopping centers (587), community and regional malls (61), and as freestanding units (169). Of the company’s stores, 756 are 1-story facilities and 61 are multi-story facilities. Kohl’s owns 265 of its stores (33 percent) and leases 369 of its stores (45 percent); 183 of its stores (22 percent) are ground-lease stores. Total square footage for Kohl’s Corp. equals 62.4 million. Nearly one-third of its stores are in the Midwest, where Kohl’s continues to grow. In 2007, the company plans to open between 110 and 115 new stores, including its first in Idaho and Wyoming. By 2010, Kohl’s plans to expand to more than 1,200 locations.

Dillard’s Inc.

Little Rock, AR
(501) 376-5200
Two hundred forty-one (241) of this company’s stores (74.8 percent) are owned, 54 stores (14.4 percent) are leased, and 20 stores (6.5 percent) are owned buildings on leased land. Thirteen (13) stores (4.3 percent) are partly owned and partly leased. In 2007, Dillard’s plans to open nine locations totaling approximately 1.2 million square feet, and expand six locations totaling approximately 445,000 square feet. Dillard’s owns 328 department stores in 29 states, spanning the central United States and the Sunbelt. Square footage for these stores totals 56.5 million. 

Lockheed Martin Corp.

Bethesda, MD
(301) 897-6000
Lockheed Martin operates in 500 locations (including offices, manufacturing plants, warehouses, service centers, laboratories, and other facilities) throughout the United States and internationally. Of these 500 locations, 48 locations are owned, totaling approximately 30 million square feet. Leased locations include 452 locations totaling approximately 26 million square feet. Lockheed Martin also manages or occupies various government-owned facilities. 

Northrop Grumman Corp.

Los Angeles, CA
(310) 553-6262
The company has approximately 55 million square feet of floorspace comprised of approximately 2,164 buildings/structures at 504 separate locations, primarily in the United Sates. Of the total square footage, 55 percent is company owned, 41 percent is leased, and 4 percent is government owned or leased. As of Dec. 31, 2006, the company leased 1 million square feet of its owned and leased facilities to third parties. In 2006, Northrop Grumman agreed to buy Essex Corp., a provider of signal, image, and information processing for defense and intelligence customers in the United States. The deal was completed in early 2007.

Gap Inc.

San Francisco, CA
(800) 333-7899
Gap operates stores in the United States, Canada, the United Kingdom, France, Ireland, and Japan. The stores total approximately 38.9 million square feet. Almost all of its stores are leased either on a short-term basis with one or more options after its initial term, or slightly longer terms with negotiated sales termination clauses at predetermined sales thresholds. Gap owns approximately 1.2 million square feet of headquarters office space located in San Francisco, San Bruno, and Rocklin, CA. It leases approximately 1.4 million square feet of headquarters office space located in San Francisco, San Bruno, and Rocklin, CA; New York City; Albuquerque, NM; and Toronto. It also owns approximately 8.6 million square feet of distribution space located in Fresno, CA; Fishkill, NY; Groveport, OH; Gallatin, TN; Brampton, ON; and Rugby, England. Overall, by the end of 2007, Gap plans to open as many as 260 new stores, including 200 Old Navy locations, 85-plus Gap stores in North America, and about 50 stores overseas. In a bid to improve profitability, Gap will convert 45 Old Navy Outlet stores to Old Navy stores by the fall of 2007.

Rite Aid Corp.

Camp Hill, PA
(800) 748-3243
The average size of each Rite Aid store is approximately 12,800 square feet. Approximately 56 percent of its stores are freestanding. As of March 3, 2007, Rite Aid operated 3,333 retail drugstores. Its new world store prototype, which is being utilized in its new store and store relocation programs, has an overall average selling square footage of 11,500 and an overall average total square feet of 14,500. 

Raytheon Co.

Waltham, MA
(781) 522-3000
As the world’s No. 1 missile maker, Raytheon is a key player in U.S. efforts to construct a comprehensive missile defense system. Raytheon’s precision engagement offerings include the company’s missiles as well as radars, data links, targeting and warning systems, and lasers. Raytheon owns, leases, and utilizes approximately 38.5 million square feet of floorspace for manufacturing, engineering, research, administration, sales, and warehousing, approximately 94 percent of which is located in the United States. Of this total, approximately 44 percent is owned (or held under a long-term ground lease with ownership of the improvements), approximately 52 percent is leased, and approximately 4 percent is made available under facilities contracts for use in the performance of U.S. government contracts. Of the 38.5 million square feet of owned and leased floorspace, approximately 2.4 million square feet was subleased to unrelated third parties. 

Johnson & Johnson

New Brunswick, NJ
(732) 524-0400
Johnson & Johnson and its worldwide subsidiaries operate 148 manufacturing facilities that occupy approximately 22.6 million square feet of floorspace (8.4 million in consumer, 6.7 million in pharmaceutical, and 7.4 million in medical devices/diagnostics). Johnson & Johnson purchased Pfizer’s consumer unit last year, a move that made it the world’s largest consumer healthcare company. 

Nordstrom Inc.

Seattle, WA
(800) 282-6060
Nordstrom, the country’s largest upscale apparel and shoe retailer, operates 191 stores. It owns 32 of its stores and leases 111 stores; 45 stores are owned on leased land and three stores are partly owned and partly leased. It plans to open three Full-Line stores and one Rack store in 2007, and eight Full-Line stores in 2008.

Intl. Business Machines (IBM) Corp.

Armonk, NY
(800) 426-4968
IBM’s manufacturing and development facilities in the United States equal 20 million square feet (16 million are owned and 4 million are leased). Improved production techniques, productivity gains, and infrastructure-reduction actions have resulted in reduced manufacturing floorspace and upgrading of facilities. IBM has seen significant changes in recent years. In 2006, the company purchased Atlanta-based Internet Security Systems in a cash deal valued at $1.3 billion. IBM is also buying MRO Software for $740 million. This year, it bought Consul, a Dutch provider of compliance and security audit software.

Circuit City Stores Inc.

Richmond, VA
(804) 486-4000
During FY01, Circuit City introduced a new Superstore format that features a brighter, more contemporary look and an open, easily navigable floorplan conducive to browsing. The company continues to refine its store prototypes. The company’s new store prototypes include both 30,000-square-foot and 20,000-square-foot formats. During FY08, the company expects more than half of its openings to be in the 20,000-square-foot format. During FY07, the company opened 23 incremental Superstores and relocated 12 Superstores. A total of 654 buildings equal approximately 19.6 million square feet.

Dell Inc.

Round Rock, TX
(800) 289-3355
Dell owns or leases a total of approximately 14.8 million square feet of office, manufacturing, and warehouse space worldwide (approximately 8.6 million square feet of which is located in the United States). The world’s top direct-sale computer vendor has U.S. manufacturing operations in North Carolina, Tennessee, and Texas. 

La-Z-Boy Inc.

Monroe, MI
(734) 242-1444
La-Z-Boy occupies 194 standalone La-Z-Boy Furniture Galleries® stores in the New Generation format, which generally has more space and a more updated appearance. The 194 New Generation format stores represent a 26-percent increase in this type of distribution in comparison to last year. About 58 percent of its 336 standalone stores are less than 6 years old. Total proprietary floorspace is approximately 11 million square feet. It plans to open another 25 to 30 of its New Generation format La-Z-Boy Furniture Galleries stores during FY08, with 10 to 15 of these being new stores and the remainder being store remodels or relocations. La-Z-Boy owns or leases approximately 13.5 million square feet of manufacturing, warehousing, office, showroom, and retail facilities. 

Williams-Sonoma Inc. (11.5)
San Francisco, CA
(415) 421-7900
This year, Williams-Sonoma increased retail leased square footage by approximately 5 to 6 percent, including 21 new stores (eight Pottery Barns, five West Elms, four Williams-Sonomas, two Pottery Barn Kids, and two Williams-Sonoma Homes) and 20 remodeled or expanded stores (12 Williams-Sonomas, seven Pottery Barns, and one Pottery Barn Kids). The average leased square footage for new and expanded is approximately 17,800 leased square feet for West Elm, 16,900 leased square feet for Pottery Barn, 13,600 leased square feet for Williams-Sonoma Home, 9,400 leased square feet for Pottery Barn Kids, and 7,000 leased square feet for Williams-Sonoma. Its gross leased store space totals approximately 5.5 million square feet for 588 stores. It also leases approximately 6 million square feet in distribution facilities. In 2007, the retailer plans to open six new Williams-Sonoma or Williams-Sonoma Home stores and a total of 15 new outlets under the PBteen, West Elm, and Williams-Sonoma Home banners. The retailer is also testing a new store concept (Pottery Barn Bed and Bath) at three locations. If successful, 40 to 50 Pottery Barn Bed and Bath stores could eventually open.

*Indicates statistics received from company, based on Buildings' Who's Who questionnaire. In cases where information was not supplied in response to Buildings' Who's Who questionnaire, information was derived from public information: 10K reports, company websites, industry-related reports, Hoover's Online, and other published and electronic materials.

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