Memphis is still giddy from the big announcement this month- ServiceMaster will relocate to the Peabody Place by the end of 2017. We've seen lots of articles about the deal, but here are 5 things to know about the move:
1. Why are they moving?
ServiceMaster is a home and business cleaning, restoration, repair and pest control company. They own companies like Terminix, American Home Shield, and Merry Maids. ServiceMaster is currently headquartered in East Memphis and has outgrown its office space. In addition, ServiceMaster leaders want all of their business segments to work in the same office. They've been looking for a building large enough to accommodate all of their employees, and were considering moving their headquarters to 10 other cities including Atlanta and Dallas, so their decision to stay in Memphis and to move into the vacant Peabody Place is a huge win for Memphis!
2. What renovations are in store?
Close to $30M in renovations are expected to transform the 360,000 square feet of the former retail space into Class A office space. ServiceMaster will invest $15M in renovations and Belz Enterprises, the Peabody Place owner, will kick in an additional $12M for shell improvements. Planned renovations include creating a "campus-like setting" and a technology and innovation center within the old retail space. There are plans to paint the exterior brick and install more than 50 windows. They'll also remove the pedestrian skybridge. There's room for 20,000 square feet of retail space, including street level space on Second. Construction is expected to be completed Dec 2017. (more here)
3. What's the impact to Downtown?
The Peabody Place mall has been empty for five years, so this a big deal for Downtown. DMC President Terence Patterson described the potential impact to Downtown as "enormous." In total, 1,200 of ServiceMaster's 2,200 employees will be relocated Downtown. Obviously that's a lot of jobs (about $100M in payroll) that could have left Memphis. It's also new customers and potentially residents that will be a major boon for local business and property values Downtown (more here).
4. What about parking?
ServiceMaster will get $11M in parking incentives, including 750 unreserved spaces and 250 dedicated spaces in the 1,000 space Peabody Parking garage. Don't worry, according to the DMC most of the current parking in the structure is after the work day (more here)
5. How did we land this deal?
There have been lots of incentives thrown at ServiceMaster to woo them Downtown. In addition to the $11M parking deal, they'll be receiving $7M in reduced city and county taxes, $5.5M from the state of Tennessee through a FastTrack Development grant, $1M from the Center City Development Corp (branch of the DMC), and $3.1M from the Memphis-Shelby County EDGE (Economic Development Growth Engine) (more here)