Omaha Forums

Was in Lincoln over Christmas at a gathering. Someone there was saying that Yates has been in talks with NFM about trying to get them to move their showrooms over to Crossroads.

I hope they go for it. This dead horse has been beat for a while but their current digs are nothing compared to Dallas and KCK.

I hope this happens too. Their current store(s) is a discombobulated mess from different expansions over the years.

That would be great to have them as the anchor right in the middle of one of Omaha's largest mixed use developments.

I think NFM is more likely to buy properties and build a new retail store east-northeast of their existing warehouse, since it is fairly new and is such an integral part of their business, along with the customer pick-up area. Plus, it seems unlikely for the developer to waste space in the Crossroads redevelopment for a new several-hundred thousand square foot warehouse adjacent to a new retail store for NFM which they'd need.

GetUrban wrote:I think NFM is more likely to buy properties and build a new retail store east-northeast of their existing warehouse, since it is fairly new and is such an integral part of their business, along with the customer pick-up area. Plus, it seems unlikely for the developer to waste space in the Crossroads redevelopment for a new several-hundred thousand square foot warehouse adjacent to a new retail store for NFM which they'd need.

Could they perhaps keep the warehouses where they currently are and just move the retail portion to the Crossroads development? They aren't too far apart from one another, so I don't think this would be too unfeasible or inconvenient.

mattl181 wrote:

GetUrban wrote:I think NFM is more likely to buy properties and build a new retail store east-northeast of their existing warehouse, since it is fairly new and is such an integral part of their business, along with the customer pick-up area. Plus, it seems unlikely for the developer to waste space in the Crossroads redevelopment for a new several-hundred thousand square foot warehouse adjacent to a new retail store for NFM which they'd need.

Could they perhaps keep the warehouses where they currently are and just move the retail portion to the Crossroads development? They aren't too far apart from one another, so I don't think this would be too unfeasible or inconvenient.

Yes, I suppose they could, but they use the warehouse to stock/stage the retail store too. Not sure how well that aspect would work for them, unless they included a staging/assembly/storage area with the new retail building for that purpose.

Overhauling the existing retail campus would probably make more sense. They have the floor space to move stuff around during construction and still stay open.

I'd never see them moving to Crossroads for the warehouse aspect of it. They could easily use Mrs. B's land and buy up the Land to the east and north up to Taco Johns, and build themselves a nice urban campus with a parking garage. Make it out of that nice seafoam green glass everybody loves.

Free up the land where their current building is for development. Win-win if you ask me

I kind of like the convoluted assembly of the buildings they currently have. It feels like the suburban equivalent of an old downtown store that's slowly grown into adjoining storefronts over time, resulting in things being kind of disjointed and complicated. I guess you could call it charm.

That being said, I think rebuilding on their existing footprint, or expanding slightly to the north-east is the most likely if/when they ever do rebuild.

If Yates is having a hard time filling the Crosssroads I could absolutely see them courting NFM. NFM would only need showroom space possibly multi level to keep with the density originally desired. That would free their current property up for a massive distribution center which would then help them grow their empire out.

If I was able to eyeball the retail part of their KC store correctly on Google Earth, it roughly has a 720' x 300' footprint.

Including that little alley way between the East and West buildings, the Omaha store's footprint is roughly 850' x 710' . There's more than enough room at the Omaha location to remodel and transform the store into one comparable to KC. Whether it's cost effective and worth the disruption, I can't say. Parking is a consideration, but if they built up, part of the existing structure could be demoed back for a parking lot.

Building a new store adjacent to their existing warehouse is their best bet. They overbuilt the warehouse in Omaha to provide distribution for the KC store. That didn't work out real well so they built a warehouse in KC after the store, and even expanded that warehouse thereafter. Their new model is to equip their new stores with their own adjacent distribution centers/customer pick-up centers. i.e. Colony, TX. (Dallas)

Building a larger distribution center in Omaha for stores operating in distant cities would be problematic, especially with poor access to I-80/29 from their current 72nd St. location. We wouldn't want that either, traffic-wise. I don't see Crossroads working for them with the investment they've already made on their current campus. There is a lot of behind-the-scenes stuff happening between the warehouse and retail store that needs close proximity.

But, like anyone else, I could be wrong. There is a huge piece of property between Cass and Dodge in the old Best Buy location, that wouldn't interfere with the other plans for X-roads.

GetUrban wrote:Building a new store adjacent to their existing warehouse is their best bet. They overbuilt the warehouse in Omaha to provide distribution for the KC store. That didn't work out real well so they built a warehouse in KC after the store, and even expanded that warehouse thereafter. Their new model is to equip their new stores with their own adjacent distribution centers/customer pick-up centers. i.e. Colony, TX. (Dallas)

Building a larger distribution center in Omaha for stores operating in distant cities would be problematic, especially with poor access to I-80/29 from their current 72nd St. location. We wouldn't want that either, traffic-wise. I don't see Crossroads working for them with the investment they've already made on their current campus. There is a lot of behind-the-scenes stuff happening between the warehouse and retail store that needs close proximity.

But, like anyone else, I could be wrong. There is a huge piece of property between Cass and Dodge in the old Best Buy location, that wouldn't interfere with the other plans for X-roads.

Maybe they could build a huge riverfront store with towers on top of it for residences/offices.

PotatoeEatsFish wrote:

GetUrban wrote:Building a new store adjacent to their existing warehouse is their best bet. They overbuilt the warehouse in Omaha to provide distribution for the KC store. That didn't work out real well so they built a warehouse in KC after the store, and even expanded that warehouse thereafter. Their new model is to equip their new stores with their own adjacent distribution centers/customer pick-up centers. i.e. Colony, TX. (Dallas)

Building a larger distribution center in Omaha for stores operating in distant cities would be problematic, especially with poor access to I-80/29 from their current 72nd St. location. We wouldn't want that either, traffic-wise. I don't see Crossroads working for them with the investment they've already made on their current campus. There is a lot of behind-the-scenes stuff happening between the warehouse and retail store that needs close proximity.

But, like anyone else, I could be wrong. There is a huge piece of property between Cass and Dodge in the old Best Buy location, that wouldn't interfere with the other plans for X-roads.

Maybe they could build a huge riverfront store with towers on top of it for residences/offices.

That would make the delivery to the residences in the towers above super easy....or mabe they could even use the residences as showrooms. Sometimes at NFM, I wonder if all of the people hanging out in the recliner section really just live there.

I was talking to a good friend of mine this weekend that is connected to the commercial real estate community here in Omaha. We started talking about the farmland between Pacific and Dodge by Boys Town that is going to be developed, and he told me he has herd from more then once source that NFM is moving out there. He said they would build a store as big as their Texas store. He said some warehouse space would remain at 72nd st location, but that store would be closing and all retail would be at the new location. The way he was talking this plan was already moving along.

That would be amazing there.

NFM wrote:I was talking to a good friend of mine this weekend that is connected to the commercial real estate community here in Omaha. We started talking about the farmland between Pacific and Dodge by Boys Town that is going to be developed, and he told me he has herd from more then once source that NFM is moving out there. He said they would build a store as big as their Texas store. He said some warehouse space would remain at 72nd st location, but that store would be closing and all retail would be at the new location. The way he was talking this plan was already moving along.

This would be a huge hit to the Westside school district tax rolls. NFM owns a huge amount of property in Westside, and it was all developed without TIF or any sort of tax breaks (and provides no additional student enrollment/expense). If their old store space sits idle, and property devalued, or eventually TIF'd for redevelopment, that would mean less money for the district, and potentially more students to support (if mixed use).

A West Dodge corridor location would be better in terms of interstate access for distribution.

NFM is in the Real Estate Development business as much as the furniture business with their Dallas Store and surrounding development. The only way moving their showroom or warehouses would make any sense is if they thought they could make lots of money owning the new development (Crossroads) or redeveloping the land they vacate (current campus).

This is out of an article on omaha.com about a family selling property in the Loess Hills for half its value - http://www.omaha.com/columnists/grace/g ... e0401.html. it had a side note stating this:

"In west Omaha, Boys Town’s farm will become buildings for a Berkshire Hathaway-owned company that plans to put 650 to 700 employees there. Pressure on landowners is so intense in Sarpy County that the Lincoln-based Nebraska Land Trust is making that area a priority. The Nebraska Land Trust does not own land but promotes conservation through easements that set limits to how the land can be used in the future."

Seems that would fit with an NFM move.

650 - 700 employees seems really low for NFM - Omaha

nebugeater wrote:650 - 700 employees seems really low for NFM - Omaha

Agreed. And that sounds right in line with the "Berkshire owned company" that has already been announced - National Indemnity...

Berkshire could be doing another Dallas-esqe development, doesn't mean the same Berkshire company has to be the anchor tenant.

I agree with the 650 - 700 being low unless you consider the wording of "putting 650 - 700 there", another words just that location. Maybe still low.

Ben wrote:

nebugeater wrote:650 - 700 employees seems really low for NFM - Omaha

Agreed. And that sounds right in line with the "Berkshire owned company" that has already been announced - National Indemnity...

Berkshire could be doing another Dallas-esqe development, doesn't mean the same Berkshire company has to be the anchor tenant.

I don't think it's National Indemnity. They just moved in the last year to the Berkshire owned World Herald building. In fact I think they have more employees and floors than BH media does in there. The space was renovated for them and is real nice.

Greg

Greg S wrote:

Ben wrote:

nebugeater wrote:650 - 700 employees seems really low for NFM - Omaha

Agreed. And that sounds right in line with the "Berkshire owned company" that has already been announced - National Indemnity...

Berkshire could be doing another Dallas-esqe development, doesn't mean the same Berkshire company has to be the anchor tenant.

I don't think it's National Indemnity. They just moved in the last year to the Berkshire owned World Herald building. In fact I think they have more employees and floors than BH media does in there. The space was renovated for them and is real nice.

Greg

Sorry, meant Applied Underwriters. Another Berkshire affiliate.

Per this statistics web site from the NFM here are some #'s even though they are a bit dated.

NFM currently employs over 2800 employees (June 2013: Does not include any Texas employees)

Our new Nebraska Furniture Mart of Texas will employ 2200!

And from here......
http://www.omaha.com/money/from-the-arc ... 43ea0.html

The Mart has an estimated 2,800 employees in Omaha and Kansas City, with more than 1,600 in Omaha. Staff members range from 16 to 83 years old.

As long as Warren Buffet is alive NFM is not moving period. There is really no reason for NFM to move. They have ran out of business almost every one of their competitors and are the unchallenged King of Furniture. If it aint broke don't fix it. Warren did not get rich by spending money that does not need to be spent.

This is one of those rare occasions I agree with Mr. Smucker. NFM is much more likely to build a new store in another Dallas-size or similar market before they build a new one in Omaha.

Crossroads is a unique opportunity. They could build a new showroom at Crossroads and leave their warehouses in their current locations. Any other rebuild in the future would require rebuilding in place or moving everything.

There would be an opportunity if a new Crossroads anchored by NFM was successful to develop their current campus even using their deep pockets to buy up surrounding properties to add to their development. The city might even use imminent domain to buy property along 72nd for a massive development project.

I am not saying it is likely but this is a unique time if NFM has any plans on a new Omaha store.

In the KC Star today is a story about NFM adding a BBQ restaurant with a fire pit and big screen tv's & booze so people can buy furniture, eat, get drunk & watch some mediocre KC sports before going home. The space was formerly a Quiznos. The outdoor area for the BBQ place will be 4,000 square feet.

I notice a few posts above this one where Grandpasmucker said that as long as Warren is alive they wont move the Omaha store. He's half right. Berkshire subsidiaries have to justify capital expenses to Warren. The KC store and the Dallas stores were no brainers. Within months or years NFM KC ran a local megastore out of business. Dillards stores usually offered furniture but when they came to Omaha they didn't bother. Other stores didn't even try to come to Omaha.

I don't think its a matter of Warren not "letting" them move or upgrade the Omaha store. They just don't need to. Had there been a compelling reason to move or improve the Omaha campus it would have been done decades ago. Mrs. B bought a farm west of 120th and Dodge a long time ago thinking it would make a good location some day. Think about the costs, both in building the new store and doing whatever with the property the current one sits on. It's a huge property and an odd layout. What really could be done with the current land? It's wide and shallow.

Given the profits the KC and Dallas stores are throwing off why bother with Omaha? Sad but true.

Here's the KC Star story.

https://www.kansascity.com/news/business/biz-columns-blogs/cityscape/article231561108.html

What would I be if I didn't bring some Detroit to the post? Here in Detroit there is a company called ArtVan. Pretty much the same product mix as NFM with a few exceptions. The difference is that ArtVan has over 200 stores in nine states. Thus here in metro Detroit for example the whole metro doesn't need to shlep to one store that is mobbed. I agree that both concepts work and it can be either one mega store or multiple stores in a metro but there is something more civil than a crowded megastore and waiting at the warehouse to pick up your purchase with hundreds of others.