The Good News Report

[pgsinger]

I cannot remember if this was posted or not. The building BMW is in now, are they under lease? If so, when is it up? Just wondering what the chances are BMW would build there own building and give Charlotte their tallest? Or, will they need space fast?

 

They own it.  They put $65 Million into the renovation of their HQ in 2008 and consolidated 1,100 jobs into the facility.  The total real estate assets there are probably well north of $100 Million as it is also right next to another facility.  I also don't see BMW doing something just because Porsche does.  Also, if you use the time frame for Porsche's move from their last locale relative to BMW's current term since renovations, then BMW would not move until 2021 (13 years assuming the building was ready now, which it isn't').  Also, based on the article I read, I would draw the conclusion that Porsche does not own their building as this will be part of a much larger complex.  If anything, this is Porsche copying BMW in providing a state of the art facility, simply delayed by the recession.  Again, I'll be Debbie Downer, BMW is not coming to Charlotte.

[kermit]

I would bet that BMW would split its current NA engineering engineering work off and move it to the Greenville area (ICAR proximity and to their plant, they also already have a test track there).

 

I would also guess that the distribution and marketing functions of the NA HQ will need better connectivity than the upstate can offer so a location at an airline hub will be critical (sorry Nashville). I don't have the impression that BMW is in a hurry to leave its current space (which it released in 2008 I yield to pgsinger), so any construction delays are likely to be a non-issue.

 

There was a discussion of BMW relocating NA HQ to the South back in the early 1990s (when they built the Greer plant) and Charlotte was in the mix. Newspaper accounts of this were clear that BMW was not interested in downtown sites in Charlotte (admittedly that was 25 years ago). Splitting off the engineering activities might make downtown sites more feasible.

Edited November 14, 2014 by kermit

[kickazzz2000]

If Porche is building a driving course next to their HQ, BMW could just move here and buy 277 to use as their own course. It's a ring and everything. 

 

"Die Mecklenburgring"

[Niner National]

Wow, this is insanely exciting......Tryon Place looks beautiful as is but throw that BMW logo on there.......wow. In regards to the flights to Munich, don't we have a direct flight to Munich too on Lufthansa?

Yep. I flew this flight in September & October. It's about 8 hours nonstop. 9 on the way back.

[pgsinger]

I would bet that BMW would split its current NA engineering engineering work off and move it to the Greenville area (ICAR proximity and to their plant, they also already have a test track there).

 

I would also guess that the distribution and marketing functions of the NA HQ will need better connectivity than the upstate can offer so a location at an airline hub will be critical (sorry Nashville). I don't have the impression that BMW is in a hurry to leave its current space (which it released in 2008 I yield to pgsinger), so any construction delays are likely to be a non-issue.

 

There was a discussion of BMW relocating NA HQ to the South back in the early 1990s (when they built the Greer plant) and Charlotte was in the mix. Newspaper accounts of this were clear that BMW was not interested in downtown sites (admittedly that was 25 years ago).

 

OK...I've had some time to do further digging, and it looks like the article I read may have used ownership a bit loosely.  Diving into BMW Groups 2013 annual financials (link below), item 23 on page 124 references a financial lease for BMW of North America LLC (which I can confirm is the entity located in Woodcliff Lake, NJ) with a remaining term of two years, a renewal option, and a purchase option.  Also, the register of deeds in Woodcliff, NJ appears to have BMW Associates, LLC as the record owner of this property since 1998 (I say appears because I am too cheap to pay to view the actual docs, so I am relying solely on the search results).  That entity is a NJ entity with a registered agent as a solo practitioner in Clifton, NJ.  You would not see a large company like BMW using a NJ entity or a solo attorney as agent.  So, I do think I was wrong when I said that BMW owns the NJ facility.  

 

If the lease had 2 years left as of Dec 31 2013, then I guess they would only have 1 more year under that lease now...    

 

I still just don't see this happening without more fanfare.  BMW knows their brand's reputation.  They will announce that they are considering moving and see what Woodcliff Lake, Bergen County, and NJ give them and weigh that against what other cities, counties, and states are going to give them.  It will be very public.

[kermit]

wow, BMW really didn't want to string us along.

 

http://www.charlotteobserver.com/2014/11/14/5315510/bmw-were-not-bringing-north-american.html#.VGaRVmM3dvA

[cltbwimob]

^^^Damn rumor mill...Bring on Mercedes.

[atlrvr]

Rarely does a company confirm a rumor when a reporter calls.  I have no idea what happens here, but I would have been more shocked if they said, "Yes, we're actively seeking to move our HQ"

[15895]

Rarely does a company confirm a rumor when a reporter calls. I have no idea what happens here, but I would have been more shocked if they said, "Yes, we're actively seeking to move our HQ"

I dunno. Typically when it seems when there ate leaks and companies deny it it's "we currently have no plans of moving and remain committed to so & so"

The BMW response to me read as though they were serious

[HopHead]

It's funny how most of the speculation about BMW moving their HQ has been made here... So are they browsing UP too? LOL. To me they are trying to squash the rumors before they get bigger. Won't be surprised if more noise about a move is made next year... whether it's here, Atlanta, etc. It's just the chicken before the egg. 

 

Side note: Lynn Wilson and Wendy Smith have become some of the bigger CO trolls. They must ignore most of the other news around here. 

[kermit]

I did followup with my source on the BMW rumor. They stand by their initial story (that BMW is shopping in Charlotte and elsewhere) and their source -- even after the Observer article. Their response to the Observer article was roughly the same as Atlrvr's (they didn't see a reason why a company would publicly acknowledge a possible relocation).

Edited November 18, 2014 by kermit

[HopHead]

Interesting short piece on the new Head of Economic Development for Charlotte. He's most well known for his role in helping recruit some of the big companies to Atlanta during his time there. Hopefully this will help further landing more big job expansions here. Of course the article ends with the typical "Charlotte wants to be Atlanta" line...

 

http://skylineviews.typepad.com/skyline_views/2014/11/charlotte-ups-ante-in-battle-with-atlanta-for-new-jobs-1.html

[15895]

Interesting short piece on the new Head of Economic Development for Charlotte. He's most well known for his role in helping recruit some of the big companies to Atlanta during his time there. Hopefully this will help further landing more big job expansions here. Of course the article ends with the typical "Charlotte wants to be Atlanta" line...

http://skylineviews.typepad.com/skyline_views/2014/11/charlotte-ups-ante-in-battle-with-atlanta-for-new-jobs-1.html

Is it just Charlotte a Few people from Atlanta feel the need to call Podunk or does Nashville, Raleigh and the others get the same treatment.....

I take it this guy must be pretty good.

Edited November 19, 2014 by AirNostrumMAD

[dubone]

It would be awesome for the city if we do start winning some relocations and deals without needing to always create massive subsidies that zero out the gains.     Maybe this guy's connections will help us get the message out that we are not like we were 10years ago and get some companies to take a second look.  

 

 

 

 

 

(Let's not talk about the Atlanta snobbery or city v city topics.  Those never go well on these forums.   Let's just assume like always it is just a factor of standard competitive trash-talk by the mayor in trying to get a deal)  

[atlrvr]

US Bank just leased another floor at the Hearst Tower that could accomodate 75-100 more people.  It should be ready by 2Q15 for occupancy.  More organic growth in the finance sector.

[dcharlotte]

It would be awesome for the city if we do start winning some relocations and deals without needing to always create massive subsidies that zero out the gains.     Maybe this guy's connections will help us get the message out that we are not like we were 10years ago and get some companies to take a second look.  

 

 

Hopefully so. The good thing about Charlotte is that the Chamber represents the city of Charlotte, which is a large entity. Invest Atlanta competes with the Metro Atlanta Chamber, the State of Georgia (which tries to help, but can get in the way), Cobb County, Gwinnett County, and the others for the same companies.  The good news for Charlotte is that many of these chambers are competing for the same tenants in and around the Atlanta region and missing some of the major players who are looking to relocate to the region.

[Deleted.]

American Airlines is mulling a HQ move from Ft Worth. I see Charlotte handing out incentives to try and get the world's largest airline to be HQ'd here. Maybe we could get a nice, large AA logo on Tryon Place.

Edited November 20, 2014 by Piedmont767

[HopHead]

American Airlines is mulling a HQ move from Ft Worth. I see Charlotte handing out incentives to try and get the world's largest airline to be HQ'd here. Maybe we could get a nice, large AA logo on Tryon Place.

 

Umm. Source?

 

EDIT. Nevermind: http://www.bloomberg.com/news/2014-11-20/american-airlines-mulls-headquarters-move-one-year-after-merger.html

 

I read it as more of a money grab from Ft. Worth. I'd be surprised if they left Texas TBH.

Edited November 20, 2014 by wend28

[15895]

American Airlines is mulling a HQ move from Ft Worth. I see Charlotte handing out incentives to try and get the world's largest airline to be HQ'd here. Maybe we could get a nice, large AA logo on Tryon Place.

 

 

Probably trying to get incentives out of Texas.

 

 

 

No American. No BMW.  And speaking of which, I doubt Portman & Crescent will both move forward with their projects with or without a tenant this coming summer. They have to say that, that's there job; to be optimistic. 

[LKN704]

In a way, I simply see the BMW article as a way for them to explore their opportunities without being under the media's microscope.

[ChessieCat]

^AA is probably trying to play Texas and Florida off of each other (FL has a 5.5% state corporate tax but no personal income taxes, while TX doesn't have a state corporate tax nor personal income taxes.).  I doubt AA would ever leave TX but if they can wring extra money out of Fort Worth, then they'll do it.

[atlrvr]

Whoa...

 

http://www.wsoctv.com/news/news/local/incentive-funds-deplete-city-tries-lure-company/njCG6/

 

Not sure what this could be...I guess we have a lot of rumors floating here, but if it requires state legislators reconvening, it must be pretty big.

[15895]

Whoa...

http://www.wsoctv.com/news/news/local/incentive-funds-deplete-city-tries-lure-company/njCG6/

Not sure what this could be...I guess we have a lot of rumors floating here, but if it requires state legislators reconvening, it must be pretty big.

I hope it's US Bank. The new space in Hearst give them time to build up while an office project/park/tower is built?

I'm not sure how entrenched US Bank is with Minneapolis. To me it makes no sense for then to relocate to Charlotte if most of their business is on the otherwise of the country, but I have no guesses.

I hope whatever it is we get it

Edited November 22, 2014 by AirNostrumMAD

[atlrvr]

MetLife may be sending more jobs this way (but the article indicates more IT related, so maybe more for Raleigh)

 

http://nypost.com/2014/11/27/metlife-to-send-more-workers-to-north-carolina/

[atlrvr]

I did followup with my source on the BMW rumor. They stand by their initial story (that BMW is shopping in Charlotte and elsewhere) and their source -- even after the Observer article. Their response to the Observer article was roughly the same as Atlrvr's (they didn't see a reason why a company would publicly acknowledge a possible relocation).

 

http://www.bizjournals.com/charlotte/blog/outside_the_loop/2014/12/ttip-treaty-would-save-automaker-500m-a-year-bmw.html

 

Today:

 

To understand the proposed Transatlantic Trade and Investment Partnership, you can think of a front bumper on an automobile, says Ludwig Willisch, president BMW of North America.

 

Willisch was in Charlotte this morning at a TTIP conference hosted by the Central Piedmont Community College. The "Jobs & Economic Growth for the Carolinas" event is being held at CPCC's Harris Conference Center.

 

 

Maybe unrelated...just pouring gas on the rumor mill with this, but seems interesting.