Space planning across multiple locations
Machine learning, artificial intelligence, and autonomous solutions are predicted to be the leading edge of future economic growth. Swedish firm, Hexagon, is a global leader in the software and ecosystems key to this movement. A period of growth through acquisitions found Hexagon’s Manufacturing Intelligence division in Michigan spread across five locations, which created an opportunity to rethink the company’s real estate strategy.
Plante Moran Realpoint (PMR) approached the assignment from multiple directions, synthesizing data around building utilization, production, staffing, cost, location, incentives, and business goals to determine the overall square footage needed for operations and provide analysis on a variety of consolidation and relocation options.
Site selection: Lease, buy, or build?
A combination of market and business factors led Hexagon to decide to establish a new regional headquarters in the city of Novi, Mich. Possible real estate options in the Novi market came down to a greenfield build-to-suit, retrofitting a leased space, or purchasing a building shell to build out. PMR’s explanation of each option’s financial and operational impacts on the company’s balance sheet gave Hexagon’s leaders the confidence to choose the purchase option. The project was awarded a $250,000 Michigan Business Development Program performance-based grant.
Construction of Hexagon’s new regional headquarters
Hexagon’s leaders sought to move operations before the leases expired on the existing locations, so timing became critical to the success of the new building’s $17 million buildout. After coordinating the purchase, PMC became Hexagon’s in-house owner’s representative, helping leaders develop the project scope, schedule, and budget before overseeing the bidding process for the design-build team.
Throughout construction, our key responsibilities were to summarize and evaluate project activities for Hexagon, offer potential solutions and outcomes when issues arose, and make recommendations that supported the project’s goals and objectives. Our depth and breadth of knowledge provided Hexagon’s leaders with information about how their decisions would impact the project scope, budget, and schedule; workplace environment; and operations.
PMC led the project team to complete the project on time and on budget. The new facility includes 46,500 square feet of office space and 40,600 square feet of high-bay space. Building amenities include collaborative workstations, a fitness center, a coffee bar, training rooms, lab space, and a technology showroom that exemplifies the company’s engineering capabilities.
A trusted advisor throughout every step of the real estate process
The most effective real estate strategies are guided by our clients’ short- and long-term business objectives, refined by data, and proactively managed to mitigate risks. From real estate strategy development, space programming, and site selection through lease/buy/build analysis, building acquisition, and build-out, PMC’s comprehensive real estate consulting services were tailored to Hexagon’s long-term success at every step of the process.
Assessing the impact of real estate decisions on the bottom line takes a deep understanding of the market factors affecting your business. Contact our team for help rethinking your real estate strategy.
