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welcome to Footlik & Associates Complete Design Capabilities for Distibution and Manufacturing

DEVELOPMENT SERVICES

Many companies have successfully used the services of Footlik & Associates, as their warehouse and operations consultants. For more than fifty years the Footliks have assisted Manufacturers and Distributors with new layouts, reengineered facilities and enhanced productivity. On a recent project, F & A moved to another level of "full service" consulting.

When a client approached them to design a new operation in Arizona, he voiced his frustration with the local real estate market. While he needed only 30,000 square feet of space for his business, the only suitable building was 106,000 sq. ft., and the owner would not subdivide it into smaller units.

Bob Footlik reviewed the real estate listing, and developed a plan to purchase the total building as a real estate venture. A partnership was formed, with the client occupying one third of the total space, and owning a one third interest in the building, with an option to buy the entire project at a later date. In this manner, he is essentially paying rent to himself, and has an equity interest, with significant tax and operational advantages. Flexibility is gained, by controlling the adjoining space for future expansion, and with additional tenants sharing insurance, taxes and utility expenses, his rental rate is below market. His aggravation level diminished because Footlik & Associates pulled together a knowledgeable team, designed the layout, planned all building modifications, provided specifications for the materials handling and storage equipment, and supervised the construction.

This was not a simple undertaking. An extensive "due diligence" examination revealed many problems with the structure and site. Significant legal work was required to clarify issues of the title and ownership. Architectural and building code concerns had to be resolved, and capital raised. With the expertise of the team coordinated by Footlik & Associates, the purchase of the building was closed. One week later the client began shipping orders.

Rather than building a stand alone structure, think about the advantages of a muiti-tenant, synergistic facility. Often the best way to compete is with a "Destination" that includes your business and other related, but noncompetitive businesses. With more capital, and professional resources available, the cost per square foot is reduced, while still retaining the advantages of an equity position. Even better, capital improvements that would have been depreciated over 38 years can be written off over the life of a lease.



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