by Candace Carlisle
Staff Writer-Dallas Business Journal
Growing demand for healthy living is causing Plano-based AdvoCare International LP to consider expansion plans.
The health supplement and wellness company is in the early stages of a real estate search for a large distribution center for its products. The company could be looking for up to 100,000-square-foot distribution facility in North Texas to move product throughout the United States, said Richard Wright, president and CEO.
AdvoCare’s expansion plans come on the heels of the company adding a second production line in its current distribution facility in Plano. The facility packages products for fulfillment six days a week.
Wright declined to comment further on the real estate move, and company officials added that the company is at the early stages of its real estate search.
AdvoCare, which recently signed a jersey sponsorship deal with FC Dallas, has more than 225,000 independent distributors who get their products for distribution through FedEx or pick up the products on-site.
“This shows how well they are doing, that they are essentially out of space in a building that they’ve only been in for a few years,” he said, adding that AdvoCare recently expanded the current building’s distribution space.
Based on AdvoCare’s current corporate headquarters and distribution center, for which AdvoCare paid cash, real estate sources say the company could move into a few different submarkets within Dallas-Fort Worth.
There are several newer buildings in Plano, and there are a couple vacant buildings for sale in Carrollton or the Valwood area that could serve as a distribution facility, said Phil Rosenfeld, vice president with the industrial division’s ownership advisory group at Colliers International’s Dallas office.
Rosenfeld does not represent AdvoCare but is familiar with the company’s location and building.
“AdvoCare has an upscale image, so he could be looking at a newer building,” Rosenfeld said. “If he’s looking for a new building, staying up north would be his best bet. But my guess is that if he’s just looking for distribution capabilities and wants to own, but not overpay, it would make more sense to buy a building off Interstate 30.”
AdvoCare will likely make a real estate decision within the next year.
Courtesy: Dallas Business Journal
Oct 12, 2012, 5:00am CDT