Kohl’s Corp., which has grown into a national department store chain, is considering plans to build a massive new corporate headquarters in Menomonee Falls, according to construction industry and commercial real estate sources.
“Something’s brewing up there,” one source said.
One source said the company issued a request for proposals from construction firms to work on a two-phase plan for a new corporate headquarters with a total of 1.5 million square feet of space.
Another source said that HGA Architects and Engineers is working on a design for up to 1 million square feet of office space for the Kohl’s headquarters project.
Kohl’s is working with HGA and construction management firm M.A. Mortenson Company on the project, according to sources. Representatives for M.A. Mortenson and HGA said they could not comment on the Kohl’s project.
"Kohl’s has strict confidentiality agreements they are having everyone sign," one source said.
Some sources said the company is targeting the Woodland Prime office park, located northwest of U.S. Highway 41/45 and Good Hope Road, for the project. However, another source said the company is also considering two sites on Silver Spring Drive.
A Kohl’s spokeswoman declined to comment on the project.
“At this time, we’ve not announced any plans relating to a new corporate headquarters location,” said Vicki Shamion, Kohl’s senior vice president of public relations and community relations. “We do not comment on real estate speculation and have no additional information to share at this time.”
The company is apparently considering several different options including a large new corporate headquarters complex, a smaller new corporate headquarters while still using the existing headquarters for additional office space, or expansion of the current headquarters, sources said.
Kohl’s currently has an 885,000-square-foot headquarters complex at N56 W17000 Ridgewood Dr. in Menomonee Falls, just off of Silver Spring Drive. More than 3,000 people work at the Kohl’s headquarters and the rapidly growing company needs more space, according to sources. One source said several Kohl’s employees work at home because the office space at the headquarters is so cramped.
“It’s cubicle city (in the Kohl’s headquarters),” one source said. “They have people on top of people.”
Last May, at the company’s annual meeting, chief executive officer Kevin Mansell said the company needs to expand its office space.
The company’s options to expand its existing headquarters are limited because it is adjacent to an “environmental corridor,” according to one source. Last year a spokesperson for the company said the current headquarters cannot accommodate further growth. However, the Kohl’s campus includes large surface parking areas that could provide space for an expansion.
The Kohl’s headquarters has been expanded several times over the years and is less efficient than a similar-sized new facility built all at once, some sources said.
One source side Kohl’s is considering plans to build a 100,000-square-foot facility, which would be the new corporate headquarters, while maintaining the existing headquarters facility for additional office space. “They’re building a new corporate headquarters and keeping the one they’ve got,” the source said. “They plan on filling both of them.”
Kohl’s is also looking for office space to lease on a temporary basis, to ease the space crunch at the headquarters, sources said.
One source said that the company, long term, needs space for an additional 2,000 employees.
No matter what the company decides to do it appears it will be a significant project, sources say.
“It does seem there’s going to be significant investment and expansion in Menomonee Falls,” one source said.
“They’re going to do something big,” another source said.
“It’s going to be huge,” another source said.
Kohl’s Corp. is ranked 135th on the Fortune 500 list. The company has more than 1,000 stores in 49 states, according to Hoovers.com. Last year the company had net income of $1.1 billion and net sales of $18.4 billion. Because of its large profits the company would not have to borrow money to build a new corporate headquarters, one source said.
“They can pay cash for this thing,” he said.
The company has met with village officials about its plans, but “there’s been nothing submitted,” said Matt Carran, director of community development for Menomonee Falls. “There’s really nothing but discussion at this point,” he said.
Kohl’s plans to begin construction on the new headquarters project by the end of the year, sources said.
