Case Study - Holts Lunsford Essay example

1685 Words Jun 21st, 2013 7 Pages
I. Executive Summary: Holt Lunsford Commercial

The case study titled “Holt Lunsford Commercial” explains how Holt Lunsford is debating how to grow his Dallas-based commercial real estate services firm and how to advise a long-time client who is wondering whether to lease or buy an industrial warehouse. The case focuses on the highly competitive and increasingly institutionalized $50 billion real estate services industry, which encompasses property management, leasing, tenant representation, and other activities. What makes Lunsford's firm, The Holt Companies, special? The article explores what corporate strategy Lunsford should choose for his firm, and what recommendation he should make to his client.

Holt Lunsford Commercial
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This model has facilitated the development or acquisition of over eight million square feet of product since 2003.

Staton Tees, a wholesale T-shirt distribution business, was founded in 1981, in Baton Rouge to service the emerging T-shirt printing industry. By 2003, Staton was the largest distributor of Hanes products and generated over $200 million in total sales. In 1993, Staton moved the firm’s headquarters to Dallas. In 1993, Staton asked Lunsford to handle his tenant representation business. Lunsford’s team in Dallas handled tenant representation work outside of Texas for Station.

Explain the supporting data
Real estate occupancy costs represented about 4% of Staton’s cost structure. With a central location in the southwest United States and excellent thoroughfare systems, Dallas had become a major distribution hub for the flow of goods to the customer. The city’s demographics and legal/regulatory frameworks made it an attractive market for corporations needing industrial space.

Identify the constraints to the problem
Welch Center was a 102,718 square-foot front-load, dock high industrial bulk warehouse, with a 24-foot ceiling floor to joist. The building had a concrete truck court (120 feet) and 107 parking spaces for employees. Inside there were approximately 15,000 square feet of office space on the ground floor dedicated to the firm’s corporate headquarters, call center, and customer pick-up area. The building was in good condition,

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