American Eagle Outfitters

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American Eagle Outfitters determined that it was in its best interest to relocate its headquarters office component, approximately 200,000 square feet, and consolidate an additional 70,000 square feet from Canadian distribution center operation.  It also aimed to reclaim existing office space, converting it to distribution use and expand the dock area and trailer staging yard.  Topography was challenged by uneven terrain and wetlands.  Local zoning issues regarding height restrictions also were a factor.  AEO contemplated moving its office component to New York City and its distribution center to Kansas City.

APPROACH

  • Located alternate sites for distribution center operation and/or alternate sites/facility for headquarters office component
  • Evaluated areas of opportunity with the least amount of negative impact to the existing workforce
  • Developed strategies to enhance recruiting opportunities by utilizing area amenities in new location
  • Considered public transportation, parking accessibilities, carpooling, day care, hotel, food service, etc.
  • Negotiated with local, state, federal governments to secure public incentives, i.e. job opportunities, grants, tax abatements, low interest financing programs

RESULTS

After years of internal and external studies, focus groups and exhaustive studies of the commercial real estate market in the Greater Pittsburgh area, a headquarters location was approved and Agreements of Purchase for a 185,000 SF office building on the adjacent site were submitted

Renovation of the main distribution center and expansion began in the fall of 2006

  • Move-in at the new headquarters began in May 2007
  • Both headquarters components remain in the Greater Pittsburgh area
  • Potential job growth of approximately 450 employees within the next decade

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