Here’s a novel way to slash your business expenses in half: Relocate 100 feet underground.
In the Midwest, many businesses have done just that.
In states like Missouri, Kentucky and Pennsylvania, there’s a growing number of firms doing business in subterranean spaces that were once mines. Starting in the 1960s, these spaces were rehabilitated for commercial use.
SubTropolis, in Kansas City, Mo., is a well-known example.
The underground business complex was an active limestone mine in the 1940s, owned by real estate firm Hunt Midwest. As mining started to taper off, it left a vast network of empty caves.
“In the 1960s came the ‘a-ha!’ moment,” said Ora Reynolds, president and CEO of Hunt Midwest. “These spaces could be reused.”
Since then, Hunt Midwest has gradually transformed the defunct spaces.
“Six million square feet of it is ready, and we have room to build out another 8 million square feet based on demand,” said Dick Ringer, SubTropolis’ general manager.
Today, 1,600 people to work at one of the 52 businesses that lease space in SubTropolis’ space, including tech and manufacturing firms, consumer products companies and auto firms.
“Ford at one time used to store its Mavericks here,” said Reynolds. And the U.S. Postal Service currently stores $2 billion worth of stamps in SubTropolis.
“The constant temperature and humidity [it’s 68 to 72 degrees year-round] are ideal for storing stamps and other products,” she said.
Other advantages: There’s underground parking. Construction costs are low since there’s already a natural roof in place — all they need to build are walls.
“We’re a ‘green’ workspace since we’re conserving natural resources,” Ringer said. “And by being deep underground, we’re a pretty secure location for businesses.”
Employees enter SubTropolis through one of 19 entrances that accommodate cars and trucks. This also facilitates cross-ventillation of natural air, although tenants can also add air conditioning and dehumidifiers. Go to CNNMoney.com for more…