Jacksonville-based PSS World Medical Inc., contemplating the expiration of its leases, is evaluating its site options, including development of an estimated 200,000-square-foot project to accommodate its operations.
PSS President and CEO Gary Corless said Tuesday that the company, a distributor of medical supplies, occupies about 175,000 square feet of space among two Southpoint buildings.
He said the lease at one building comes due in two years and he wasn’t immediately sure about the other.
Because of that, the company is evaluating its options to renew the leases, move to another location or develop a building.
Based on industry estimates of $150 a square foot, a development of 200,000 square feet could represent a $30 million investment.
Corless expects the decision to be made within a few months.
Corless said the company leases space in the PSS Building at 4345 Southpoint Blvd. and the Enterprise Park Building at 4190 Belfort Road.
The buildings accommodate 200,000 square feet for PSS, but the company doesn’t use all of it, he said.
Corless said any discussion of a move was “way premature” and said the company is happy with its headquarters space.
“We said we may consider other options. That is part of the evaluation,” he said.
He said the evaluation team is led by Chief Financial Officer David Bronson and that PSS is working with CNL Commercial Real Estate in Jacksonville to evaluate the options.
“There are certainly pros and cons at looking at new space versus staying where we are,” Corless said.
He also said he is is aware of how distracting a move might be. The company has about 900 employees in Jacksonville and 3,900 across the country, he said.
Corless said the evaluation will include looking at the expense of moving versus adapting the current space.
If the decision is made to move, then the company will decide to occupy an existing building or work with a developer on a build-to-suit structure to meet the company’s specific needs.
“I don’t know if I could put odds on any of the three to date,” Corless said. “I want to go through it and really be objective as our people go through and make the decision,” he said.
“We are fairly large here in Jacksonville and we do use a good bit of space,” he said.
He did not say whether the company would prefer a Southside location near its existing headquarters or whether it might consider other sites, such as Downtown.
“We would take into consideration the commute times for all of our people,” he said.
Asked about Downtown, “nothing is out of the mix. I don’t want to take anything off the table,” he said.
Corless said the company also is making changes in its business structure.
PSS recently announced a major restructuring.
PSS intends to focus on distributing supplies for four markets: physician, laboratory, in-office dispensing and home care and hospice. It will seek to divest its skilled nursing and specialty dental businesses.
In a recent conference call with analysts, Corless said the realignment is a response to a changing U.S. health care system.
356-4266