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Case Study

Development Teamwork Puts Adidas on a Fast Track to Savings

The objective came from the C-suite:  After acquiring rival shoe manufacturer Reebok, Adidas hoped to save $25 million annually by consolidating seven existing facilities of both companies into one new U.S. distribution center. Corporate real estate leaders recruited our own consulting, transaction and project development all stars to partner with them to help real estate achieve Adidas’ savings objective. 

The team determined that Spartanburg, S.C., with its attractive labor rates and incentives, was the perfect fit for Adidas’ needs. Using our market knowledge of the area, our transactions experts identified 13 potential sites. The winner was a 263-acre parcel along Interstate 85, and we sweetened the prize by negotiating $20 million in financial incentives. Since Adidas didn’t want to commit its capital, we then found an experienced developer to purchase the site, build the distribution center, then lease it to Adidas. Under our project management, two critical facilities were constructed under stringent requirements in record time.

Buoyed by the success of the U.S. project, Adidas has retained Jones Lang LaSalle’s worldwide team for comparable projects in the United Kingdom, Brazil and Panama. When it comes to helping real estate achieve corporate goals, the renowned athletic apparel manufacturer knows a winner when it sees one.

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