Prior to 2008, LG outsourced its distribution centre to a third-party logistics provider and, therefore, were not familiar with the local industrial market. As the expiry of the third-party contract approached, LG engaged CBRE to review the potential of bringing its distribution centre in house.
CBRE conducted a comprehensive survey of all potential distribution centre locations best on LG’s facility requirement. The best suitable options were shortlisted and a competitive environment was created through a Request for Proposal process.
LG was able to relocate from an inefficient third-party situation to a custom renovated distribution centre in a compressed timeframe. In 2011 CBRE also created a competitive environment for LG to complete an early short-term renewal at below market rates.
CBRE was awarded the NAIOP Industrial Lease of the Year Award in 2009 for the original LG Electronics transaction.