Timing played a key role in Terracon’s decision to build its new $21 million corporate headquarters in Olathe rather than relocate to existing office space in the region. With 10 to 15 percent annual growth, the engineering consulting firm needed space to fit new employees that it expects to hire to accommodate burgeoning business.
John Coe of Copaken Brooks worked as Terracon’s corporate real estate advisor and says the company had a need for speed.
“We started in June of last year and did an exhaustive search of opportunities throughout the metro,” Coe said. “‘Speed to market’ would be one way to describe it.”
Terracon plans to be in its new 65,000-square foot, two-story headquarters in the first quarter of 2018, but getting to the deal's finish line took some rapid legwork on the part of the multiple parties.
The company began evaluating headquarters options in July 2016, looking at 11 existing buildings and 18 build-to-suit options in Kansas and four existing buildings and two build-to-suit options in Missouri.
By December, Terracon narrowed down its list to three existing properties-- two in Kansas and one in Missouri-- but ultimately determined its preference was to stay in Olathe, its headquarters home for more than decade. With no available existing buildings to accommodate the company’s growth, moving forward with a build-to-suit emerged as the preferred course of action.
“It was a long shot that a build-to-suit option would come through because timing was tight,” Coe said. “But VanTrust stepped up and proved they could work within that time frame.”
VanTrust Real Estate and Terracon wasted no time in requesting project incentives from the City of Olathe, which approved a 10-year, 65 percent property tax abatement, as well as industrial revenue bonds that allow for a sales tax exemption on construction-related materials.
Terracon won’t have to move far; its new headquarters will be in Corporate Ridge Office Park near Kansas Highway 10 and Ridgeview Road, just around the corner from its existing office at 18001 W. 106th.
“This investment represents the passionate commitment of our employee-owners to progress our growth," Terracon President Swaminathan Srinivasan said in a release. "Inspired by new surroundings, we will focus our future on serving clients in new, innovative ways and seeking out opportunities to make positive impacts on the communities where we live and work.”
The project’s development team includes property owner VanTrust, which will lead the design-build team, as well as McCownGordon Construction, general contractor.
Terracon provides environmental, facilities, geotechnical and materials services from more than 140 offices serving all 50 states.