Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the industrial market, click here.)

SAN FRANCISCO-Hewlett Packard will consolidate several hundred locations into fewer core sites as part of a four-year plan to reduce real estate costs. The plan includes relinquishing floor space within certain leased facilities and closing certain sites or floors in locations that it owns.

All told, the company owns or leases about 65 million sf worldwide, according to its latest annual report. Company officials said Thursday that plans are not yet finalized as to which facilities will be vacated. A company source tells GlobeSt.com that no decisions have been made with regard to the subletting or sale of leased or owned buildings.

HP also isn’t yet saying how much it expects to save as a result of the consolidation effort. A company official did say that a portion of the savings would be used to upgrade the sites into which the consolidation will occur.

The consolidated sites will have more open seating and shared team spaces in an effort to increase collaboration and innovation, according to the announcement. In addition, the company plans to expand private spaces for individual work including focus booths and free address workstations.

The consolidation plan is an extension of restructuring efforts announced this time last year. The company also recently announced plans to consolidate 85 IT data centers into six centers in three geographic locations, and in recent weeks and months has sold at least one campus and has another on the market.

In May, HP sold its 40.7-acre 489,600-sf campus in Littleton, MA, for $25 million. In September 2005, it put on the market 487,000 sf of office space in five buildings located on 47 acres of its 297-acre campus in Houston, which is located at the corner of US Highway 249 and Louetta Road.

Shares of HP common stock stood at $59.83 in afternoon trading on the Nasdaq, off $0.41 (0.68%) from Wednesday’s closing price. The Nasdaq as a whole is up 0.33% on the day.

Of the 65 million sf the company controls worldwide, 51 million sf is dedicated to manufacturing plants, research and development facilities and warehouse and administrative facilities, according to its most recent annual report. The remaining 14 million sf is dedicated to sales and support operations.

HP owns 59% of its manufacturing, research and development, warehouse and administrative space and leases the remainder, according to SEC filings. Approximately 39% of the sales and support space is owned.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.