Beaumont Health is in the market for at least 360,000 square feet of office space in Southfield for a new corporate headquarters with 2,500 employees.
Details of the long-discussed plans for a so-called "shared services building" are revealed in a request for proposal obtained by Crain's last week that says the health system is in the market to do a $60 million-plus project. The move would cap a consolidation effort for Michigan's largest hospital chain following its 2014 three-system mega-merger.
And more formal moves could come soon, as the RFP says interviews of prospective contractors to design the space are scheduled for Aug. 21 and the project is expected to be awarded by the end of the month.
While the specific location is not discussed in the RFP, dated Aug. 2, four real estate sources familiar with the negotiations have said Beaumont is strongly considering a deal to lease 350,000 square feet of available space or outright buy the First Center Office Plaza on Northwestern Highway and move employees there. The sources requested anonymity because the deal is not complete.
That comes after backing away from previously considered locations such as the former Federal-Mogul Corp. headquarters and Raleigh Officentre as possible locations because they were too small, the sources said. At one point, Beaumont had the Federal-Mogul buildings under contract.
Beaumont declined to make its CEO, John Fox, or another executive available for an interview for this story and only issued a short statement:
"Beaumont Health is looking at multiple sites in Oakland County. Our leadership says, 'We are looking at lots of options,'" Robert Ortlieb, a spokesman for Beaumont, said in a statement.
Fox said in a previous interview with Crain's that he is looking for a new corporate headquarters location. During that interview, he declined to specificy an area, but said it could be multiple locations.
"I don't want to increase real estate speculation" and drive up costs, Fox said. At that time, it was clear he wanted the new single-location headquarters building close to one of Beaumont's eight hospitals, which are in Grosse Pointe, Dearborn, Taylor, Royal Oak, Trenton, Farmington Hills, Wayne and Troy.
Revealed in the RFP are details the eight-hospital system has declined to publicly disclose, including a 2018 time frame for a potential consolidation of its employees from multiple locations throughout Southeast Michigan and planned capital expenditures.
"With eight hospitals, 5,000 physicians and 35,000 employees from three different founding organization [sic] the owner is reorganizing all the administrative non-campus specific staff into a single location," the RFP reads.
"The vision of Beaumont Health senior leadership is to offer an open, collaborative, supportive and flexible space that provides a healthy work environment to their staff."