Nordstrom Flagship Downtown Seattle

[marshd1000]

I’m a Washington native and very familiar with the Downtown Seattle Nordstrom. I’m also familiar with the current issues of Downtown Seattle. I have feared Nordstrom closing the Downtown Seattle store and moving offices to Bellevue and designating the Bellevue Square store as the flagship! But according to this article in the Seattle Times, it looks like the company has no plans on closing it! It even states that the store is one of its top performers! I’m happy to hear this but surprised! Here’s the article:

https://www.seattletimes.com/business/n ... g#comments

[storewanderer]

The store must still have adequate staffing to maintain itself. Staffing is of course the top way to deter theft. Perhaps they staff it better since it is near headquarters and they are doing sets there or trying other things there?

In San Francisco store traffic was so slow that the store became rather understaffed.

[Super S]

The downtown Portland store is still hanging on, and it might have seen an increase in business as other local stores closed at Lloyd Center, Clackamas Town Center, Vancouver Mall, and downtown Salem. (they still have a location at Washington Square) I say might as downtown Portland has suffered many of the same issues as Seattle, and unless somebody is very dedicated to Nordstrom, they might have taken their business elsewhere. Macy's left downtown Portland long ago, and Lloyd Center more recently.

[ClownLoach]

Nordstrom owns the building and it's their corporate headquarters, so really if the store turns a dollar of profit they will keep it open for an eternity. They would have to find a new headquarters which is expensive if they closed and vacated the property, and the building is not exactly conducive to being converted to all offices or residential. Remember that it serves as a "prototype store" as well to reduce costs further, their space planners can just go downstairs and move some racks or shelves around making the building into a working lab. Many other retailers have to spend a fortune on prototype model or lab stores hidden in warehouses that never see the light of day and cost as much to run as a real store.

The only circumstances under which I could see them closing Downtown Seattle would be a company cash flow crisis in which they need the hundreds of millions of dollars (heck, maybe a billion) they would get for the site from a developer, or if the retail business so deteriorated that operating losses exceeded the cost of closing and establishing a new corporate office elsewhere since subleasing is unlikely in the near term.

Remember that being rent free dramatically shifts the profit margins. Sears wouldn't have made it to the 1990s if they had to pay rent. Look at how quickly they evaporated once they sold the real estate out from under their stores and the sites suddenly bled out red ink. The only reason why chains like Nordstrom and Macy's exist is because they still own so much Real Estate - in fact Macy's at times has been worth less as a company than the value of just their single "World's Biggest Store" in NYC...

Owning the real estate is still the way to go in retail. Home Depot now exceeds 95% corporate ownership of their store real estate, but brilliantly also is 95% leased for warehouse space enabling rapid changes when needed. In fact Home Depot is 100% owned on new locations being built today so they have basically eliminated rent as an expense and thus it is nearly impossible for one of their stores to lose money which is why they rarely if ever close stores these days.

[babs]

Nordstrom owns the building and it's their corporate headquarters, so really if the store turns a dollar of profit they will keep it open for an eternity. They would have to find a new headquarters which is expensive if they closed and vacated the property, and the building is not exactly conducive to being converted to all offices or residential. Remember that it serves as a "prototype store" as well to reduce costs further, their space planners can just go downstairs and move some racks or shelves around making the building into a working lab. Many other retailers have to spend a fortune on prototype model or lab stores hidden in warehouses that never see the light of day and cost as much to run as a real store.

The only circumstances under which I could see them closing Downtown Seattle would be a company cash flow crisis in which they need the hundreds of millions of dollars (heck, maybe a billion) they would get for the site from a developer, or if the retail business so deteriorated that operating losses exceeded the cost of closing and establishing a new corporate office elsewhere since subleasing is unlikely in the near term.

Remember that being rent free dramatically shifts the profit margins. Sears wouldn't have made it to the 1990s if they had to pay rent. Look at how quickly they evaporated once they sold the real estate out from under their stores and the sites suddenly bled out red ink. The only reason why chains like Nordstrom and Macy's exist is because they still own so much Real Estate - in fact Macy's at times has been worth less as a company than the value of just their single "World's Biggest Store" in NYC...

Owning the real estate is still the way to go in retail. Home Depot now exceeds 95% corporate ownership of their store real estate, but brilliantly also is 95% leased for warehouse space enabling rapid changes when needed. In fact Home Depot is 100% owned on new locations being built today so they have basically eliminated rent as an expense and thus it is nearly impossible for one of their stores to lose money which is why they rarely if ever close stores these days.

Nordstrom's HQ is actually in a separate building about two blocks away the store. They also lease a bunch of space in another building. If I recall correctly, it's the CenturyLink building. To be honest, I could see them move corporate to Bellevue but the Nordstrom brothers are committed to downtown Seattle.

[ClownLoach]

Nordstrom owns the building and it's their corporate headquarters, so really if the store turns a dollar of profit they will keep it open for an eternity. They would have to find a new headquarters which is expensive if they closed and vacated the property, and the building is not exactly conducive to being converted to all offices or residential. Remember that it serves as a "prototype store" as well to reduce costs further, their space planners can just go downstairs and move some racks or shelves around making the building into a working lab. Many other retailers have to spend a fortune on prototype model or lab stores hidden in warehouses that never see the light of day and cost as much to run as a real store.

The only circumstances under which I could see them closing Downtown Seattle would be a company cash flow crisis in which they need the hundreds of millions of dollars (heck, maybe a billion) they would get for the site from a developer, or if the retail business so deteriorated that operating losses exceeded the cost of closing and establishing a new corporate office elsewhere since subleasing is unlikely in the near term.

Remember that being rent free dramatically shifts the profit margins. Sears wouldn't have made it to the 1990s if they had to pay rent. Look at how quickly they evaporated once they sold the real estate out from under their stores and the sites suddenly bled out red ink. The only reason why chains like Nordstrom and Macy's exist is because they still own so much Real Estate - in fact Macy's at times has been worth less as a company than the value of just their single "World's Biggest Store" in NYC...

Owning the real estate is still the way to go in retail. Home Depot now exceeds 95% corporate ownership of their store real estate, but brilliantly also is 95% leased for warehouse space enabling rapid changes when needed. In fact Home Depot is 100% owned on new locations being built today so they have basically eliminated rent as an expense and thus it is nearly impossible for one of their stores to lose money which is why they rarely if ever close stores these days.

Nordstrom's HQ is actually in a separate building about two blocks away the store. They also lease a bunch of space in another building. If I recall correctly, it's the CenturyLink building. To be honest, I could see them move corporate to Bellevue but the Nordstrom brothers are committed to downtown Seattle.

Nordstrom lists the store address as their Corporate Headquarters on their website, 1617 6th Ave. Seattle, WA 98101. Source: https://press.nordstrom.com/contact-us

It also appears that they built a skybridge over 6th Ave that connects the offices in the store to the back of the CenturyLink Plaza; Nordstrom decorates the glass within the skybridge and that seems to indicate that the offices in the store are connected to the CenturyLink ones.

Everything in Bellevue is insanely, crazy expensive. It would be a horrible financial decision. Even if they sold downtown Seattle, which would likely not bring in a lot of money, it would only pay a few years of rent in Bellevue.

[babs]

Nordstrom owns the building and it's their corporate headquarters, so really if the store turns a dollar of profit they will keep it open for an eternity. They would have to find a new headquarters which is expensive if they closed and vacated the property, and the building is not exactly conducive to being converted to all offices or residential. Remember that it serves as a "prototype store" as well to reduce costs further, their space planners can just go downstairs and move some racks or shelves around making the building into a working lab. Many other retailers have to spend a fortune on prototype model or lab stores hidden in warehouses that never see the light of day and cost as much to run as a real store.

The only circumstances under which I could see them closing Downtown Seattle would be a company cash flow crisis in which they need the hundreds of millions of dollars (heck, maybe a billion) they would get for the site from a developer, or if the retail business so deteriorated that operating losses exceeded the cost of closing and establishing a new corporate office elsewhere since subleasing is unlikely in the near term.

Remember that being rent free dramatically shifts the profit margins. Sears wouldn't have made it to the 1990s if they had to pay rent. Look at how quickly they evaporated once they sold the real estate out from under their stores and the sites suddenly bled out red ink. The only reason why chains like Nordstrom and Macy's exist is because they still own so much Real Estate - in fact Macy's at times has been worth less as a company than the value of just their single "World's Biggest Store" in NYC...

Owning the real estate is still the way to go in retail. Home Depot now exceeds 95% corporate ownership of their store real estate, but brilliantly also is 95% leased for warehouse space enabling rapid changes when needed. In fact Home Depot is 100% owned on new locations being built today so they have basically eliminated rent as an expense and thus it is nearly impossible for one of their stores to lose money which is why they rarely if ever close stores these days.

Nordstrom's HQ is actually in a separate building about two blocks away the store. They also lease a bunch of space in another building. If I recall correctly, it's the CenturyLink building. To be honest, I could see them move corporate to Bellevue but the Nordstrom brothers are committed to downtown Seattle.

Nordstrom lists the store address as their Corporate Headquarters on their website, 1617 6th Ave. Seattle, WA 98101. Source: https://press.nordstrom.com/contact-us

It also appears that they built a skybridge over 6th Ave that connects the offices in the store to the back of the CenturyLink Plaza; Nordstrom decorates the glass within the skybridge and that seems to indicate that the offices in the store are connected to the CenturyLink ones.

Everything in Bellevue is insanely, crazy expensive. It would be a horrible financial decision. Even if they sold downtown Seattle, which would likely not bring in a lot of money, it would only pay a few years of rent in Bellevue.

I take it you haven't been there. That skybridge you are referring to connects to the nearly vacant Pacific Place mall and giant underground parking garage. No office space to speak of. Nordstrom is very secretive of their HQ. When you there, there is a tiny lobby with no signs outside and only a small sign on the wall that says Nordstrom, Inc. with an elevator leading up. This isn't any spectacular or impressive office. I have been there so I know. They just don't want any traffic to their offices unless invited. Office space in the past in Bellevue was financially comparable to Downtown Seattle. Now the pandemic may have e changed that but doing business in the Seattle area isn't cheap so cost isn't a factor for them.

[ClownLoach]

Nordstrom's HQ is actually in a separate building about two blocks away the store. They also lease a bunch of space in another building. If I recall correctly, it's the CenturyLink building. To be honest, I could see them move corporate to Bellevue but the Nordstrom brothers are committed to downtown Seattle.

Nordstrom lists the store address as their Corporate Headquarters on their website, 1617 6th Ave. Seattle, WA 98101. Source: https://press.nordstrom.com/contact-us

It also appears that they built a skybridge over 6th Ave that connects the offices in the store to the back of the CenturyLink Plaza; Nordstrom decorates the glass within the skybridge and that seems to indicate that the offices in the store are connected to the CenturyLink ones.

Everything in Bellevue is insanely, crazy expensive. It would be a horrible financial decision. Even if they sold downtown Seattle, which would likely not bring in a lot of money, it would only pay a few years of rent in Bellevue.

I take it you haven't been there. That skybridge you are referring to connects to the nearly vacant Pacific Place mall and giant underground parking garage. No office space to speak of. Nordstrom is very secretive of their HQ. When you there, there is a tiny lobby with no signs outside and only a small sign on the wall that says Nordstrom, Inc. with an elevator leading up. This isn't any spectacular or impressive office. I have been there so I know. They just don't want any traffic to their offices unless invited. Office space in the past in Bellevue was financially comparable to Downtown Seattle. Now the pandemic may have e changed that but doing business in the Seattle area isn't cheap so cost isn't a factor for them.

I've been there and seen the lobby but it's been a while. Also when I was in the store they were doing a construction project several floors up to wall off some space for offices and a bunch of corporate people with HQ badges (obviously space planners) were rearranging the men's shoes and taking pictures plus had laptops on carts to create planogram schematics. Didn't recall the bridge and just doing a Google Maps drive it looks like it's all connected.

Most corporate headquarters for smart retailers are very plain. One of the red flags I saw at my last company was when they decided to invest a couple hundred million dollars to give HQ a lavish remodel. Not long after they began the project and spent a fortune, they abandoned everything mid-construction and bought a new building and moved in there instead. Even more money, while they were cutting maintenance and payroll budgets in the stores. Totally the wrong priorities. But the fact that Nordstrom has enough room to play around and use the building like a lab or model store is a big deal, huge cost savings. Most big chains as I said wind up with a full size store behind locked doors for mock ups and such that never sees the light of day but costs just as much as a real store. Nordstrom doesn't need that because of downtown Seattle.

[Brian Lutz]

My Mom worked at Eddie Bauer corporate for several years back in the late Nineties (back when they were owned by Spiegel and around the time they peaked) and they had a pretty lavish headquarters in Redmond at the time. Sometime after Spiegel's bankruptcy in 2003 (which resulted in the Spiegel catalog business being spun off as the parent company rebranded to Eddie Bauer) they moved to more generic offices at the Lincoln Square development in Bellevue, where I believe they remain today. I believe they do consider the Bellevue Square Eddie Bauer store to be their flagship now, although back in the Nineties a store located at Rainier Square in Seattle was considered the flagship.

Like a lot of other real estate in the area, Eddie Bauer's old headquarters in Redmond was absorbed into expansion of the Microsoft campus shortly after they vacated it, and eventually became Microsoft's visitor center housing their company store and a museum.