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Commercial Real Estate
Business Observer Friday, Dec. 13, 2019 9 months ago

Arthrex fuels economic engine in Collier County

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Company's new headquarters is expected to fuel even greater growth in Naples.
by: Kevin McQuaid Commercial Real Estate Editor

After two years of development, one of Southwest Florida’s largest new mixed-use projects — and one that is expected to have a significant economic development spin-off effect — is about to be completed.

Medical device maker Arthrex Inc.’s new six-story headquarters in Naples is expected to be delivered early next year, further fueling an economic development engine that injects more than $1 billion annually into the county’s economy.

The 300,000-square-foot building, at 1250 Creekside Way, replaces a trio of smaller buildings that were razed within the company’s campus to make way for the new quarters.

The new headquarters development comes amid tremendous growth by Arthrex, one of Collier County’s largest private employers. The company is expected to add more than 560 new jobs as part of the project.

“Their impact on Southwest Florida’s economy is virtually immeasurable,” says Randall Mercer, a partner in the Fort Myers-based commercial real estate brokerage firm CRE Associates.

“They’re a world-class company and a high-tech manufacturer in a market dominated by service-oriented firms, too,” Mercer says.

In addition to the new office space, Arthrex is developing a four-story, 160-room hotel to accommodate training and other company guests and a “Wellness and Medical Center” comprising 38,000 square feet along Goodlette Road.

Linking the trio of new buildings, the company is constructing a three-acre park with a series of interconnected walking and biking paths and pavilion measuring more than 1,000 square feet for outdoor events and activities.

Each of the three new buildings, too, will contain specialized amenities and features.

The two-story Wellness and Medical Center, for instance, is being designed to contain an employee fitness center with spin and yoga classes, a juice bar and lounge, a retail store showcasing Arthrex merchandise and a clinic where employees and their families can go to receive free health care services.

The INNovation Hotel, measuring 170,000 square feet, has been billed as a full-service hospitality property that will likely contain on-site dining services and other amenities.

The new administration building, meanwhile, is slated to include a 15,000-square-foot cafeteria for employees and an outdoor terrace that will overlook a lake measuring more than an acre.

The building also will be connected to a six-story parking garage containing 1,400 parking spaces.

“As Arthrex continues to experience unprecedented growth around the world, we remain committed to expanding in Southwest Florida,” company President and Founder Reinhold Schmieding says, in a November 2017 statement unveiling the new headquarters.

And while Arthrex has added more than 1,000 new jobs in the past five years in Collier County, Schmieding says the new campus will keep pace with future hiring until roughly 2030.

“This project was designed to accommodate our growth into the next decade, while maintaining the beautiful aesthetic of the Naples community,” he adds.”

In the U.S., Arthrex maintains operations in North Naples and in California. But worldwide, the company now has sales offices or services physicians in nearly two dozen countries, including Germany, Japan, China, Russia, the United Arab Emirates, Switzerland and Brazil.

Company officials did not respond to multiple attempts for comment or perspective on the new headquarters’ project.

But Mercer notes the concept of developing a hotel specifically for doctors or others traveling to Southwest Florida for Arthrex orthopedic device training makes tremendous sense.

“They have so many people coming here, from all around the world, and it’s a good idea to keep those people self-containing on their campus,” he says. “Much of their work here is in the form of tutorials, and there’s nowhere in Naples to really do that except some of the bigger hotels, which sometimes have other events booked and aren’t available.”

But the new headquarters is expected to further spark the region’s growth. In 2016, Collier County concluded that Arthrex and associated vendors and suppliers account for more than $1 billion in spending and investment in the county.

Jace Kentner, Collier County’s director of Business and Economic Development, says Arthrex “adds value” to the county.

“Their salaries stay here,” Kentner says. “They’re not a franchise, they’re not headquartered somewhere else. Their growth is organic growth. They try to do business locally to the extent they can, and they make a quality product that is made here by folks who care about this community.”

It could not be determined whether Arthrex intends to vacate space it occupies in the planned community of Ave Maria in the county or offices in Walden Center in Bonita Springs, once the headquarters of homebuilder WCI Communities, where Arthrex leases 16,500 square feet.

Kentner believes the company will maintain both spaces and backfill them over time.

Whether that comes to pass or not, Mercer says the company’s new headquarters will be a welcome addition to the county.

“Their design is new and contemporary, very clean and efficient looking,” he says. “It shows that they’re a very detail oriented company.”

 

 

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