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Golub Corp. looking to rent out as much as half of headquarters

Golub Corp. looking to rent out as much as half of headquarters

Price Chopper parent corporation has too much empty space in Nott Street building
Golub Corp. looking to rent out as much as half of headquarters
Golub Corp. is headquartered at 461 Nott St. in Schenectady.
Photographer: PETER R. BARBER

SCHENECTADY — The corporate parent of Price Chopper and Market 32 supermarkets is looking for a tenant.

Golub Corp. has listed its headquarters at 461 Nott St. for rent and is willing to give up as much as half of the space — 120,000 square feet — for $15 per square foot per year. The space has been available for a few months; commercial real estate broker CBRE is handling the listing.

Golub Corp. spokeswoman Mona Golub said on Tuesday that the building was designed 10 years ago to accommodate growth, so when the company moved in in 2010, there was more room than was needed.

“When we opened, there was excess space on each and every floor, and the entire third floor was vacant,” she said.

The company as a whole has grown since then, with more employees and more supermarkets, but its headquarters staff has repeatedly shrunk, as the firm reduced costs and increased efficiency.

At its dedication in June 2010, the building was home to 725 workers consolidated from various sites, including the Rotterdam headquarters the company had occupied since 1961. 

Golub would not say how many people work there now. In August 2017, as the company was looking for voluntary staff reductions, she said about 650 people worked in the headquarters building, most of them full-timers.

The company is looking to lease 40,000 to 120,000 square feet, which would equal one to three full floors.

It has not consolidated employees to three floors, as a means of saving electricity and heating costs, because consolidating before knowing the final space configuration would likely lead to another wholesale reconfiguration, which would eliminate any utility savings realized, Golub said.

“It’s efficient as efficient can be,” she said, noting the building's gold certification under the Leadership in Energy and Environmental Design Green Building Rating System. That rating reflects numerous eco-friendly features put in place during the design and construction phase.

Golub said the building should be attractive to prospective tenants: It’s new, within walking distance of downtown, has a Mazzone-operated cafe on-site, has off-street parking and includes a fitness center.

“All of these things bode well,” she said.

The 9.3-acre parcel previously housed a Big N plaza, and before that was home to buildings owned by Alco, which operated a locomotive factory a short distance north, across Erie Boulevard on what is now Mohawk Harbor. Industrial contamination from Alco needed to be cleaned up before construction of the Golub headquarters could begin.

The final price tag was $38 million. The developer, the Galesi Group of Rotterdam, owns the building, and Golub Corp. leases with an option to buy. The CBRE listing indicates the sublease would run through 2039.

Galesi is busy trying to fill even newer office space at Mohawk Harbor. Its CEO, David Buicko, said he isn’t worried about competition from one of his earlier projects.

“There’s not a lot of existing class A space available” in the city or the Capital Region, he said.

More quality space hopefully means more quality tenants, Buicko said.

"It benefits all of Schenectady and all of Mohawk Harbor," he said.

Golub said the supermarket company employs about 21,000 in total at 134 stores in six states, a figure that includes the Schenectady headquarters and its Rotterdam distribution facility.

Store-level employment has been increasing, as headquarters employment has decreased, she said, adding that the distribution center workforce is unchanged.

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