BJ’s Wholesale Club is seeking a new corporate headquarters, but it's not looking far.
A tax increment financing agreement between the retailer and the city of Marlborough, Mass., for a new head office there is on the agenda next week for a finance committee of the Marlborough City Council. If approved the deal could move BJ's about 5 miles away from its current home base in Westborough, Mass., by next fall, according to correspondence between David Picot, SVP of real estate and property development for BJ’s, and Marlborough Mayor Arthur Vigeant, posted on the city’s website.
According to Picot, BJ’s is contemplating a lease to occupy 190,000 square feet to accommodate 1,000 employees in two buildings of an office park known as the Campus of Marlborough. BJ's anticipates making investments of between $15 million to $18 million for tenant improvements, which include office refurbishment and a data center installation. The company also anticipates investing $5 million to $7 million to construct a 300-car parking garage, exclusively for BJ's.
The company currently occupies 282,000 square feet in a stand-alone building in Westborough. According to BJ’s filings, the company has a lease for that property through January 2026.
Under the proposed tax increment financing deal, BJ’s would be required to maintain no less than 800 jobs at the facility through 2042. The real property exemption under the proposed deal would be 100% in fiscal 2023, fiscal 2024 and fiscal 2025, and gradually decreasing through the life of the lease.