Dive Brief:
- Sprouts Farmers Market unveiled a new 180,000-square-foot headquarters in Phoenix, according to a Wednesday press release from Keyser Commercial Real Estate.
- The seven-acre campus includes a new office building, a flagship Sprouts store and additional retail for tenants.
- The new corporate site comes at a busy time for Sprouts as the specialty grocer continues to grow its store and distribution presence while preparing for a new CEO.
Dive Insight:
Sprouts’ relocated headquarters resides within the CityNorth development and centers around a four-story, 144,500-square-foot office building, according Wespac Construction, the project’s general contractor. Keyser noted on its website that the space is designed to accommodate more than 1,000 people.
“The customized headquarters provides a workplace that aligns with Sprouts’ culture, enhances employee experience, and positions the organization within one of Arizona’s most desirable corporate environments,” Keyser wrote.
The headquarters’ on-site Sprouts store spans 25,000 square feet — around the size of the average Sprouts location. The campus also includes an 11,000-square-foot space for high-end retail and restaurants and a three-story parking garage.
The initial term of the headquarters campus lease is 10 years, and the total non-cancellable lease payments are $110 million, according to a Securities and Exchange Commission filing. The lease also includes a renewal option for a 10-year period.
The headquarters is the latest investment by the specialty grocer as it gears up for expansion. The grocer plans to enter New England and the upper Midwest as well as strengthen its reach in Texas through new stores and self-distribution facilities.
The new corporate campus is nearly twice as big as Sprouts’ former headquarters, which encompassed 96,000 square feet inside The Offices on High Street in Phoenix, according to Commercial Property Executive.
