In a bid to accommodate its growing manpower,
Nike Inc.
(
NKE
) bought new office space in Washington County in Beaverton, Oregon
for about $44 million, close to its world headquarters, as reported
by Business Journal. The deal was finalized last month. The
four-building office space along with the nearby 18-acre land were
previously owned by Georgia-based
Piedmont Office Realty Trust Inc.
(
PDM
).
Earlier, Nike had taken two of the acquired buildings on lease
for the past eight years, while the other two buildings were leased
by
International Business Machines Corp.
(
IBM
).
Employing a total of 38,000 people, with over 7,000 of them
based in its world headquarters, the company has been in search of
additional space for quite some time. Reports in December 2011
confirmed that Nike was on the lookout for a 100,000 square feet
space in Beaverton, in spite of leasing 160,000 square feet of
space in two buildings in the area.
With 346 retail stores in the United States and 343 retail
stores internationally, Nike Inc. is the global leader in athletic
footwear, apparel, equipment and sports-related accessories with
operations in over 170 countries.
In an attempt to expand its global reach and market share Nike
has been keen on capitalizing on the growth opportunities in the
emerging markets, especially in China. Further, the company is
focused on expanding its direct-to-consumer business model and
other brands to expand geographically.
We believe Nike's continued investment in emerging markets as
well as its focus on direct-to consumer business and brands augur
well for future operating performance. This will not only help in
expanding its market share, but will also facilitate in
strengthening its competitive position.
Currently, Nike has a Zacks #3 Rank, which translates into a
short-term Hold rating. We retain a long-term 'Neutral'
recommendation on the stock.
INTL BUS MACH (
IBM
): Free Stock Analysis Report
NIKE INC-B (
NKE
): Free Stock Analysis Report
PIEDMONT OFFICE (
PDM
): Free Stock Analysis Report
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