(BRK.A), (BRK.B)
Berkshire Hathaway’s Nebraska Furniture Mart (NFM) has begun construction on its second Texas location in Cedar Park, about 16 miles northwest of Austin. This new project, located 200 miles from NFM’s massive Grandscape development in The Colony near Dallas-Fort Worth, marks a significant expansion for the retail giant.
The Cedar Park project spans 118 acres, smaller than the 433-acre Grandscape, but still ambitious. Plans include a 500,000-square-foot NFM store, a 700,000-square-foot warehouse, a 250-room hotel with a 30,000-square-foot city-owned convention center, and 250,000 square feet of commercial space. The development is expected to generate $435 million in tax revenue for Cedar Park over 25 years, with an initial $400 million investment and 725 jobs created by its opening in late 2026 or early 2027.
NFM CEO Tony Bolt began searching for a second Texas site in 2019, ultimately selecting Cedar Park for its strategic distance from Grandscape. The new location aims to leverage NFM’s strong brand recognition without cannibalizing existing business, replicating the success of Grandscape’s blend of retail, hospitality, and entertainment offerings. The addition of a Scheels sports superstore has already been announced, signaling the development’s potential as a major regional attraction.
© 2024 David Mazor
Disclosure: David Mazor is a freelance writer focusing on Berkshire Hathaway. The author is long in Berkshire Hathaway, and this article is not a recommendation on whether to buy or sell the stock. The information contained in this article should not be construed as personalized or individualized investment advice. Past performance is no guarantee of future results.