Nike Plans 600 KSF Move to Tishman’s New Shanghai Campus
- Jan 10, 2012
January 10, 2012
By Nicholas Ziegler, News Editor
Following increased demand for its products in China, Nike Inc. has just announced plans to build a 600,000 square foot corporate campus in Shanghai. The sports-equipment maker has selected Tishman Speyer’s new mixed-use development in the city’s Yangpu District, The Springs, as the campus’ future site. Nike expects to move into the new campus by the first quarter of 2014 and will be the first office tenant in the $2.5 billion development.
According to the company’s financial documents, revenue for all Nike products in China increased from $1.7 billion in fiscal 2010 to $2.1 billion in fiscal 2011, making the country one of the company’s highest-growth markets.
Calling the move “a strategic investment in our continued growth in China,” Craig Cheek, Nike’s vice president & general manager of Greater China, said that the move will unite all Shanghai employees into one central location.
Nike has signed a long-term lease with Tishman for the developer to create more than 587,227 square feet of space in a multi-building campus. When complete, the campus will have up to three buildings, a five-story conference center, basketball court and soccer field. The development is located between Shanghai’s two airports, Hong Qiao and Pu Dong, and will be built along a subway interchange.
According to Nike’s most recent SEC filing, the company creates 33 percent of its footwear in China, making the move one of consolidation. Additionally, Nike saw a 24 percent increase in future orders from the June-to-November quarter when comparing 2010 to 2011.
The Springs is Tishman Speyer’s largest project in China and follows the development of previous successful commercial projects in Tianjin and Chengdu. The Springs broke ground in June 2011 as a 9.7 million-square-foot green community that will, at completion, feature residential units, commercial, hotel, office and retail space.