Tuesday, November 28, 2006

Office Depot Agrees to $210 Million Build-to-Suit of New HQ in Boca Raton FL

CoStar Group - November 27, 2006

Flagler|Codina Development Group broke ground on November 20 on a three-building campus that will become the new global headquarters of Office Depot Inc. (NYSE:ODP). The three buildings will each measure 208,077 square feet, totaling 625,000 square feet, and will be at 660 N. Military Trail in Boca Raton, FL.

The company is currently headquartered in Delray Beach, FL and Flagler|Codina is helping it to stay in Palm Beach County in what is 2006's largest build-to-suit thus far (in the entire United States). The new facility will be in the northern half of Boca Raton's 54-acre Arvida Park of Commerce and is scheduled to complete in 2008.

Office Depot is currently headquartered on a three-building campus a few miles away at 2100-2300 S. Congress Ave. and 2200 Old Germantown Road in Delray Beach. An advantage offered by the new campus is that the buildings will be connected by a glass atrium, whereas the current headquarters consists of three buildings that stand alone.

Office Depot signed a 15-year lease with the landlord, an 80-20 joint venture between pension fund giant TIAA-CREF and Flagler|Codina (TIAA-CREF is the majority partner). It has been reported that Office Depot will receive up to $16.7 million in state and county incentives to stay in Palm Beach County, and that 580 new jobs will be added with the creation of the new facility.

The price tag was estimated in August at $210 million. Sphere: Related Content

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