Russell Delays Decision
The News Tribune is reporting that Russell Investments will not make an announcement by the end of this year about relocating their headquarters. From the press release:
“Russell Investments announced today that it is extending its timeline for making a final headquarters location decision.
bq. “Recent economic events have had a significant impact on the Puget Sound real estate market. As a result, Russell believes it is in the best interest of the company and its stakeholders to continue evaluating its options, particularly as new opportunities emerge. Russell is considering multiple sites in Tacoma and Seattle, and expects to make an announcement in 2009.”
Well I guess we’ll all just have to wait. Any new real estate available soon? WaMu’s old HQ anyone?
Link to the News Tribune
Previously on Exit133
Filed under: Developments, General
26 comments
S Squid October 16, 2008
I put on my “reading between the lines” goggles and the release read thusly:
Given the current financial crisis, we have reason to believe we can get a fantastic property for cheaper than we could have ever possibly imagined. Since we are fully capitalized to pay cash, we are just wait for the bargains to make their way to market.
T Thorax O'Tool October 17, 2008
Interesting… I used my CorporateSpeek Translator 3.0 TM and got a slightly different result:
“The market is tanked, we’re pretty certain we can take advantage of Tacoma even more in a few months. City council will be desperate.”
R RR Anderson October 17, 2008
How do we know they’re not going to up and collapse like all the other financial sector meltdown thingies happening lately?
is there someway we can kick the tires on ol’ russel?
E Elliot October 17, 2008
TO’T, I completely agree.
T Thorax O'Tool October 17, 2008
I actually doubt Russell will collapse if only for two saving attributes:
1) It’s privately held, so it has some level of insulation from the wild ride Wall Street is going on.
2) Russell handles a variety of retirement funds, endowments and foundations. It’s got a pretty broad range of pots that it has it’s fingers in… you know, spread the risk.
While I doubt they’re in the same financial straits as other big players (cough, WaMu), it’s a certainty that their bottom line is taking a hit. It’s entirely possible that their financial health has taken enough of a hit that they deem it prudent not to be taking on any big expenditures at this time.
…unless of course, the City makes an offer so sweet that they can’t refuse (and that our grandkids will be paying for).
Gotta remember, Russell got where it is now from financial prudence and savvy. If they got $100M earmarked, I would be surprised if they didn’t wait to bargain it down to $60M. Buy low!
D Dan October 17, 2008
Between the steady stream of executives departing and the change in the commercial space market…it seems to me like they are planning to wait for a good existing space to open up (like WAMU). If Russell’s bottom line is hurting at all then this is absolutely the wrong time to embark on building a $300 Million + building on their own, especially when Seattle office vacancies are at 15% and with the Wamu building expected to become vacant in short order. I think they are all but gone, just waiting for the Wamu thing to work itself out. Regardless of whether it is the Wamu building or not, there is going to be a lot more office space available in Seattle next year.
M Michael October 17, 2008
I would encourage all to visit www.larryfaulk.com Look at his June blog entry regarding his proposal to keep Russell in Tacoma. It would be nice to have a senator representing us in Tacoma that has a vision and a plan. Read his blog, and then vote for Larry Faulk in the 27th District.
R rich October 17, 2008
Ok, I haven’t posted in a while, but frankly Larry’s ideas sounds great, but remember like ALL politicians this election year, they adjust and change their positions to win votes. Lightrail from Sea-Tac to Tacoma by 2012??? Do you really think that can happen? Come on, do some reality thinking here……..in fact, EVERYONE, do some reality thinking on ALL of the canidates you think are going to offer CHANGE….does it really make sence? Is it GOOD change or BAD change, remember CHANGE can be GOOD or BAD….NOT JUST GOOD!!!! What sort of HISTORY does the candidate have? HISTORY points to CHARACTER and what dicisions they may make in the future, not just WORDS to get elected………WAKE UP and THINK for once…..forget what other people tell you……THINK for once……and do you own REALITY check…….once again, light rail from sea-tac to Tacoma by 2012….are you serious?????????? I dont’ think from a construction process it can even happen that quickly…….not to mention the time spent to convience sound transit to do it…….come on…….think people……..stop drinking the KOOL-AID!!!!!!!!
A altered chords October 17, 2008
Re: “kick the tires on ‘ol Russel”
Read their website to gain an understanding of what they do.
They are primarily advisors.
They are little affected by the decline in housing prices that we’ve seen over the past 2.5 years.
They are not traders of mortgage backed securities. Therefore, they are unaffected by the mortgage backed securites (that are in turn backed by houses that have declined in value over the past 2.5 years).
They are owned by by are not themselves an insurance company. Therefore they are unaffected by the losses incurred by insurers that entered into credit default swaps of companies that held mortgage backed securities backed by mortages on homes that declined in value over the past 2.5 years.
Russell gets the Altered Chords “superior” rating. (see sandwich post for rating system details)
A altered chords October 17, 2008
Re: “kick the tires on ‘ol Russel”
Read their website to gain an understanding of what they do.
They are primarily advisors.
They are little affected by the decline in housing prices that we’ve seen over the past 2.5 years.
They are not traders of mortgage backed securities. Therefore, they are unaffected by the mortgage backed securites (that are in turn backed by houses that have declined in value over the past 2.5 years) decline in value.
They are owned by by are not themselves an insurance company. Therefore they are unaffected by the losses incurred by insurers that entered into credit default swaps of companies that held mortgage backed securities backed by mortages on homes that declined in value over the past 2.5 years.
Russell gets the Altered Chords “superior” rating. (see sandwich post for rating system details)
M Michael October 17, 2008
2012 for light rail?? Come on Rich, have you seen the current plan. 2024-2026. Really, should we wait that long? Larry is pushing that we dramatically move up the time frame. Have you heard anything from anyone else. Leadership is taking a positon, whether is popular or not. Larry Faulk has made a proposal, not a promise. Lastly, Change is not a common theme for Larry Faulk. Read the rest of his blog and website. Tacoma needs some political leadership, that is currently missing.
S Squid October 17, 2008
I think I have posted this before, but I am not crying huge tears for Russell leaving because I have a pretty strong suspicion that we’ll attract a company to the building that actually fits better than Russell.
The “Russell” building is owned by Ilahie Holding. Ilahie is a division of a conglomerate called Saltchuck. Saltchuck owns a bunch of INTERNATIONAL SHIPPING companies, including TOTE, which currently has its offices in Federal Way, with other Puget Sound offices scattered, mostly in Seattle. Saltchuck is a bad match for gentrified Seattle and a great match for gritty Tacoma. They could consolidate lots of their operations in the Russell building and maybe even move some ops here that are currently located all over creation.
I’m guessing that when Ilahie bought the building, they did so with a handshake understanding that Russell wasn’t committed to Tacoma for the long-haul and that eventually the opportunity would present itself for them to consolidate in a town that embraces the shipping industry.
T Thorax O'Tool October 17, 2008
And why isn’t Tacoma trying to woo Saltchuck as well?
R rich October 18, 2008
Smokin crack, I say………all of you……You really think if Russell and it’s 1000 employess leave Tacoma, we will get anywhere in the next decade….seriously……stop drinking the KOOL-AID!!!! This will be a huge step back for T-Town…..and Mayor B and his poor excuss for a council will have the Russell departure as their legacy…………Mayor B, you can’t just sit on your fat *ss and expect companys to stay or come……how about being proactive and have a short-mid-long term plan for Tacoma…….stop the *ss sitting for once and do something for the good of Tacoma……..Peace out!!1
R RR Anderson October 18, 2008
Saltchuck is cool… I like the idea! They could watch their RollON/RollOFF tote vessels come in and out of the port. it makes sense for russel to swoop down onto the WaMu scraper.
T Thorax O'Tool October 18, 2008
Ugh.
I’m so burned out and tired of all this high-finance/stock market/corporations taking advantage of cities/etc stuff.
We just need to offer them the best deal we can. If they ditch Tacoma, then we just need to aggressively woo someone else who isn’t “too good” for Tacoma. Saltchuck should be being approached now.
If our humble city is “too gritty” for them, so be it. We don’t need an uptight company that values image more than it’s own community.
S Squid October 21, 2008
I wouldn’t be surprised if there is behind the scenes stuff going on here. It’s not like they do these negotiations on the front page of the paper. It would be in Tacoma’s best interest to keep negotiations with Saltchuck as private as humanly possible until a deal was inked.
A altered chords October 21, 2008
These darned high-finance/stock market/corporations also employ people.
It is a competetive world out there and other cities actually strive to attract corporations that will employ their citizens so that their citizens can continue paying their mortgages and therefore pay property taxes and presumably sales tax.
I am dissapointed when I read commentary on every Russell related thread where commenters display a disturbing lack of understanding of basic economics.
E Erik S October 21, 2008
Sidebar: I have always been insulted by the proposal that Tacomans pay ST taxes to bring light rail to the city by 2026 (maybe). Having said that, I never really thought that having a light rail line to SeaTac built sooner would be much of an improvement. Want to ride a slow train to Federal Way? Go for it, have blast. I don’t want to do that. I just want meaningful, usable bus service between downtown Tacoma and downtown Seattle, including service after the Sound Transit board’s apparent midnight bedtime. No more Cindarella bus service! But they don’t seem to want to give me that, so they won’t get my vote for their suburban choo-choo.
Sorry, had to vent a bit. Back on topic now. I hate to say it, but I’m not particularly optimistic about Russell staying, and that hurts. I agree that the city (and state) have probably done about all they can to sweeten the pot. Now Russell just needs to decide.
This Sweetchuck thing, on the other hadn, is really encouraging. I like the sound of it!
M michael g. October 22, 2008
On a seemingly minor but very positive note for Tacoma’s attractiveness as a place to live and work, last weekend’s Squeak and Squawk indie music festival was a significant step forward culturally. So is the new bar, the New Frontier, that hosted the festival. The corporate/economic cart often rides behind the cultural horse. Cool bars, more and better cheap restaurants, and non-cheesy music venues could do more to make creative people in their 20s and 30s (and their potential employers) move here/stay here than all the tax breaks in the world.
M Mofo from the Hood October 22, 2008
AC @ 19: “I am dissapointed when I read commentary on every Russell related thread where commenters display a disturbing lack of understanding of basic economics.”
I read somewhere that Russell employs about 1100 people in Tacoma.
Approximately how many total people work in Tacoma? 2200? 3300? 4400?
A altered chords October 22, 2008
michael g. – that is an encouraging thought. I finallay made it to the Tempest Lounge 3 years after they opened. Cool place. Great manhattan.
What was “Bernardo’s Aroma Cafe” is now “Vinum Coffee & Wine Lounge”. Merende is about to open. There is a new music venue downtown about to open this Saturday “Stephanie’s Gospel and Jazz”
Question for you. Are people over 40 not creative?
M michael g. October 22, 2008
AC @23: I should hope they are — I’m not too far from there myself. But I think we’d both have to admit that older creative types don’t create quite the scene younger ones do, at least not on their own.
E Erik S October 22, 2008
MG: Although I was able to go there last weekend, I’m pretty excited about this New Frontier place. The Java Jive has been putting on some really cool shows but it’s a little on the remote side if you’re traveling by bus or on foot. Where exactly is the NF located? I’ve tried to keep an eye out for it when riding through the dome area on buses bound for Olympia or Seattle.
AC: plenty of people over 40 are creative and wacky. But many of them put zany times on hold for a spell to raise little ones. This is less common in amongst the whippersnappers. Or at least the big city whippersnappers. Also, at 32 I can see a worsening trend at least in my personal hangover department….
M michael g. October 22, 2008
25th and C, near Freighthouse Square. It’s right on the corner, though hard to identify from the outside.
A altered chords October 23, 2008
michael g. Walked by. Very hard to id from the outside. No signage. But looked like a cool place through the window.
I’ve identified another new place. The Muse Music Cafe. It’s on 6th right next to Redline Style. Opening night is tomorrow night. The band starts at 7:00 they are called “Miles from Chicago”
This place may have been announced already.