July 27, 2020 (Courtesy the Jacksonville Business Journal)
Northrop Grumman Corp. (NYSE: NOC) is renewing its lease of a warehouse at the city-owned Cecil Commerce Center, keeping its subsidiary Northrop Grumman Storage Systems Corp. in Jacksonville for years to come.
Northrop Grumman has leased the 56,679-square-foot warehouse since 2000. The company will be paying $12,422.15 per month, with a 3% increase each year over the five-year lease. The lease has three five-year renewal options. The warehouse is used for the storage of aerospace parts and components.
The Mayor’s Budget Review Committee will review the lease in its Monday meeting.
The aeronautics industry has been heavily impacted by the reduction in travel caused by the Covid-19 pandemic, prompting the company to revise its investor guidance in April.
“Our results this quarter reflect the strength of our business, our portfolio’s alignment to the highest priority global security threats, and the dedication of our team to deliver for our customers and our shareholders in a challenging environment,” CEO Kathy Warden said of the first quarter results. “As we respond to the global pandemic, our first priority is protecting our employees’ health, safety and well-being while continuing to deliver our mission essential products and services for our customers. We are also focused on supporting our supply chain and the communities where we work. We are updating our guidance to reflect COVID-19 related impacts as we understand them today. As we monitor and respond to the evolving challenges related to the pandemic, we continue to deliver against strong customer demand and invest for the future.”
The company reports its second quarter results on July 30.