SMC Corporation of America

Client: SMC Corporation of America

Locations: Noblesville, IN

Real Estate Type: U.S. Headquarters and Distribution

Services Provided:

Tenant Representation, Project ManagementLocation Advisory and Incentives

Project Overview

SMC Corporation, a leader in the pneumatics automation industry, needed to consolidate its U.S. headquarters, engineering, assembly and distribution into a single facility. The global company has more than 12,000 employees, factories in eight countries and sales networks in 49 nations. It manufactures more than 520,000 components and supplies products to industries ranging from semiconductors to food preparation.

The Challenge

  • SMC’s requirement involved a time sensitive consolidation strategy to bring headquarters, engineering, assembly and distribution to a single facility.
  • The assignment also called for disposition of 69 surplus acres and SMC’s existing headquarters facility.
  • SMC also required in-depth analysis of expansion and relocation alternatives and incentives, including existing facilities and competitive sites to accommodate new construction.

The Solution

  • DTZ’s team combined all facets of the assignment into a seamless approach encompassing surplus land disposition; new facility conception through land acquisition, development and building construction; and management of incentives compliance for 10 years.
  • DTZ disposed of SMC’s surplus 69 acres through a managed bid process and then employed an IRS Section 1031 Exchange to defer the gain on the site’s sale.
  • DTZ’s comprehensive alternative site analysis evaluated property attributes and economic incentives in competing locations.

Results Achieved

  • DTZ’s analysis and brokerage, research and location advisory expertise resulted in the acquisition of a 100-acre business park parcel to accommodate the construction of a 1.2 million square foot facility to support SMC’s consolidation requirements.
  • DTZ secured state and local commitments for $22.5 million in tax credits, training grants, tax abatements and infrastructure, both off- and on-site. By competitively bidding all phases of the assignment, coupled with value engineering, the end result was significant savings for SMC.
  • Incentives included 34% of $67.2 million in capital investment, $73,331 per job and $18.40 per square foot.
  • The Indianapolis metro region retained 458 full time jobs, and 275 new positions will be created by 2014.