With the right wind blowing from the rooftop of Nestl̩ WatersӪ North American headquarters in Greenwich, a stream launched skyward from a shaken carbonated-beverage bottle has a slim shot at landing in neighboring Port Chester, N.Y.
That appears to be about the only chance the Empire State has of getting any attention from the owner of Poland Spring Water and other brands.
With the local commercial office market hardly bubbling over in 2009, brokers say Nestlé Waters is investigating its options for its headquarters, as its current lease nears expiration at 777 West Putnam Ave. in Greenwich. It is perhaps the largest lease transaction still unsettled in Fairfield County entering the second half of 2009.
Nestlé Waters has more than 8,000 employees in the U.S. and Canada, including some 400 workers at 777 West Putnam Ave. at last report. The company has yet to state its plans for that facility, and a spokesperson could not be reached at deadline.
In 2008, Nestlé Waters had $8.8 billion in worldwide revenue and was the lone division of Lausanne, Switzerland-based Nestle to suffer a decline in sales at 1.6 percent, excluding the impact of acquisitions in the intervening year.
The companyӪs North American operations are run by Kim Jeffery, who earlier this year publicly criticized a proposed bottle bill in New York that would have extended deposit charges to a broad range of beverages sold by Nestl̩ Waters. A lawsuit filed by Nestl̩ delayed implementation of the New York bill.
Separately, Jeffery endorsed a revamped bottle bill in Connecticut proposed by Gov. M. Jodi Rell.
Similar carping in New York by the Pepsi Bottling Group division of Purchase-based Pepsico Inc. renewed old rumors that Pepsi Bottling might abandon its headquarters in Somers, N.Y., for Danbury. Pepsi Bottling has yet to state whether it will remain in Somers or relocate in New York or Connecticut.
In Fairfield County, Nestlé Waters will have limited relocation options; despite some 600,000 square feet of space coming on the market in the second quarter according to data furnished by CB Richard Ellis, a commercial brokerage company with a Stamford office. Most of that space was freed up in the form of smaller blocs, whether available for sublease or directly from landlords, and few spaces exist that could accommodate the more than 100,000 square feet Nestle Waters would require.
One possibility would be iPark Norwalk, which to date has been leased by physician clinics affiliated with Norwalk Hospital. The facility is still leasing space, however, and possibly could accommodate a company the size of Nestlé Waters while shortening the commute for some employees who live west of Greenwich.
Further down the line, Building & Land Technology has yet to announce an anchor tenant for commercial offices it is building in Stamford”™s South End, though that project is not expected to near completion for another year.
And 695 Main St. in Stamford has yet to reveal a replacement anchor tenant for General Re Corp., which is relocating to 120 Long Ridge Road in the city.
According to Robert Caruso, senior managing director of CB Richard Ellis”™ Stamford office, the current trend is for “blend and extend” deals that allow tenants to stay in place under lease terms similar to what they have. Such deals allow companies to defer relocation decisions until they can better gauge the economic recovery, while allowing landlords to keep valuable tenants as they make mortgage payments on their properties, or to cover other costs.
