IKEA Breaks Ground for 366,000-SF Store

ATLANTA-Anticipating that the local and national economic rejuvenation will dovetail with its summer 2005 store opening, Sweden-based IKEA has broken ground on its first Southeast location, a two-level, 366,000-sf structure. The project is located at the western end of Atlantic Station, the 138-acre, $2-billion redevelopment nearing completion in Midtown.The store will have two levels of underground parking for 1,597 vehicles and a 300-seat restaurant. A representative for the privately held IKEA declined to disclose the project’s cost or the company’s average annual sales. But area construction-industry estimators tell GlobeSt.com the entire cost of the project will probably come in at about $50 million. They base their estimate on a projected average hard-construction cost of about $125 per sf for all of the components in the project. About 500 employees will be hired to work in the store. Another 500 workers are expected to assist in the project’s construction.In a prepared statement, the company says it plans to open five new stores a year for the next 10 years. Other locations being reviewed are Bloomington, MN; Brooklyn, NY; Dublin, CA; Frisco, TX; New Haven, CT; Philadelphia; Somerville, MA; Stoughton, MA; Tempe, AZ; and a relocation in Houston. IKEA has 190 stores in 31 countries, including 18 in the United States.