Widgets Magazine
  • Costco planning to buy Hertz office building

    Hertz employees located in a company-owned office building near Quail Springs Mall were told today that Costco will be purchasing the property and they will need to be out by the end of June.

    Hertz recently filed for bankruptcy protection but months earlier had commenced consolidating employees to their property on NW Expressway with the expectation that all would be out this spring.

    This would leave the 225,000 square foot, 4-story building completely vacant.

    Costco had previously announced plans to open an operations center in Oklahoma City, and has been working with city and state officials on a deal which would include public incentives in exchange for creating over 1,000 new jobs.

    Through the Greater Oklahoma City Chamber of Commerce, Costco had issued an alert to local commercial real estate brokers seeking 32,000 square feet of office space indicating they preferred to lease but would consider a purchase.

    In a May 11th presentation to the Oklahoma City Economic Development Trust, a Costco spokesman said they were in the process of completing a purchase contract on a local building and that information would be public in approximately 2 weeks.

    In that same meeting, Costco revealed that 90% of the workload at the center would be for their growing eCommerce business and the remainder would involve their travel services.

    Costco also revealed that they had looked at New Mexico and Nevada before deciding on Oklahoma.

    The average salary at the site would be just under $60,000 plus generous benefits.

    By all reports, Costco's first warehouse in Oklahoma City has exceeded expectations. As we were first to report on February 18th, the Washington-based company is also planning a location in Moore.

    Costco currently operates almost 800 warehouses worldwide.

    The subject property contains a full basement, cafeteria, a gym, meeting rooms and a large number of cubicles and offices on all floors. Sources have indicated Costco will be buying all the current furniture in addition to the building and land.

    The Hertz building is quite a bit larger than Costco's original target and there has been speculation the deep discounter may seek to grow well beyond 1,000 local employees.

    Site of consolidated Hertz Operations on NW Expressway
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