Greeting card company Papyrus-Recycled Greetings will move 60 employees from its Fairfield offices to a new south Napa location later this year. The move partially offsets the loss of 70 wine industry jobs that Treasury Wine Estates will relocating from Napa to Oakland about the same time.
According to a news release, Papyrus-Recycled Greetings has begun construction of a new 30,000-square-foot facility located on Gateway Road West in the Napa Valley Gateway business park.
The office will be the new corporate headquarters for Papyrus-Recycled Greetings, a brand of American Greetings. American Greetings acquired the Papyrus and Recycled Greetings brands separately in 2009. American Greetings is headquartered in Ohio.
“We’re really excited. It’s going to be a beautiful facility,” said Patrice Sadd-Molnar, communications director at American Greetings.
Some 60 jobs – including the Papyrus-Recycled Greetings creative team and business staff — will relocate to Napa because its lease ended in Fairfield, said a news release.
The future Papyrus-Recycled Greetings Napa facility, at 240 Gateway Road West, was once occupied by Diageo Chateau & Estate Wines.
The $2 million facility is expected to be completed by May, said Chris Craiker of Craiker Architects & Planners.
The newly renovated and remodeled space designed by Craiker Architects & Planners and will include approximately 30,000 square feet of new office spaces, art and illustration areas and “state-of-the-art” conference rooms.
Papyrus retail stores, which are owned and operated by Schurman Retail Group, recently moved their business headquarters to Nashville.
“While our companies work very closely together as stewards for the Papyrus brand, we do not own that (retail) business,” said Molnar.
There is one Papyrus retail store in Napa, located at Silverado Plaza on Trancas Street.
The news of the 60 additional Papyrus jobs contrasts with the news from late January that Treasury Wine Estates (TWE) was moving some 70 jobs from the same Napa business park to new offices in Oakland.
The TWE jobs relocating to Oakland include sales, marketing and some human resources and information technology positions, according to Treasury Wine Estates.
The Papyrus move to Napa appears to be counterintuitive, said Robert Eyler, Ph.D., professor of economics and director of the Center for Regional Economic Analysis at Sonoma State University.
Solano County commercial office space lease rates tend to run lower than Napa County rates.
According to Colliers International’s 2017 fourth-quarter report, the average asking rate for “Class A” office space in Fairfield was $2.28 per square foot, compared to $2.35 in Napa. The Fairfield office vacancy rate was 20.7 percent. At the same time, the Napa office vacancy rate was 7.7 percent.
“It must be that there was some employee, logistics or market reason for them to move there,” said Eyler. Perhaps it’s the cache of the “Napa Valley” name. Papyrus is the higher-end division of American Greetings, Eyler noted.
Depending on the wages of the TWE jobs that leave Napa County, that loss may be “slightly more damaging” than the addition of the Papyrus jobs simply because of all the wine industry connections and the related spending that TWE department is responsible for in Napa County, Eyler said.