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NASHVILLE, TN- Nissan North America Inc. will relocate its 1,300-person suburban Los Angeles headquarters to an all-new facility in Franklin, TN, a southwest suburb of Nashville. The company’s North America headquarters have been in Gardena, CA, since 1960, but is now seeking to lower its cost of doing business.

A Nissan spokesman tells GlobeSt.com the company expects to spend $70 million on a new facility, but could not say how big the facility would be or exactly where it would be located and declined to obtain the information. He did say that Nissan would own its facility, which will be in the Cool Springs area, and that construction would begin next year and be compete in 2008.

If Nissan needs an average of 200- to 250 sf per person, which is typical, then house 1,300 people it would need between 250,000 and 325,000 sf of space. As for the location of the facility, local real estate brokers say Charlotte, N.C.-based developer Crescent Resources’ Parkway Center is the only one with available land already zoned for an office complex in the Cool Springs area. Parkway Center is located the east side of Interstate 65 at the Cool Springs Boulevard exit.

Company sources say the move will allow much closer collaboration with Nissan’s manufacturing, purchasing, product quality and supply chain management functions. Those functions are located 30 minutes away in Smyrna, TN, where the company has a $2.1 billion vehicle assembly plant and 6,700 employees. Another 1,300 people work at the powertrain assembly plant in Decherd, TN.

Additionally, Nissan chief executive Carlos Ghosn says Tennessee mentioned the lower costs of doing business in Tennessee; the favorable business and taxation climate that exists in the state; the potential to improve operational efficiencies among its North American functions; and Tennessee’s central location Information was not immediately available Thursday afternoon on the value and details of the incentives provided the company by state, regional and local governments.

David Reinhart of CRESA Partners in Portland, OR was part of a team that assisted Louisiana-Pacific Corp. in its move from Portland to Nashville two years ago. He tells GlobeSt.com that Tennessee has lower business tax rates, no personal income tax and significantly lower real estate and utility costs when compared to Southern California.

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