PROVEN PERFORMANCE
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Situation
- A long time corporate resident of Plano, Texas, Adams Golf splashed onto the golf scene with the invention of the Tight Lies fairway wood in the late 1990s. After a successful period of growth and product line expansion, the company was purchased by the Adidas Group in June of 2012.
- The acquisition positioned Adams for exponential growth in both the United States and international markets. The brand-conscious company desired to enhance its image and pursue significant growth in both headcount and production. It was important to find a facility that was flexible enough to handle its near term growth without handcuffing them to a long term financial commitment.
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Action
- To allow for a full range of alternatives to consider, Stream started the facility search approximately 18 months prior to the expiration of two existing lease obligations. Adams evaluated build-to-suit campus scenarios, existing consolidated lease options and a renewal of its current leased facilities.
- Stream leveraged the community economic development groups for tax abatement and other economic incentives. Utilizing an architectural team, consultants and internal resources, Stream and Adams performed a thorough analysis of headcount projections, departmental space needs and revenue forecasting to model and formulate a real estate plan.
Results
- Following an in-depth analysis, the group determined that the best course of action was to renew the current facilities, re-brand the environment and evaluate the course of the fast growing business at a later date.
- Stream worked with two different owners to negotiate favorable rental structures and retrofit allowances. Adams renewed its 65,135 square foot headquarters facility at 2801 E Plano Parkway and its 52,983 square foot distribution facility at 2800 Technology Drive.
