Raleigh public relations and marketing firm Capstrat has expanded its office space.
The company, which was acquired in January by New York-based public relations firm Ketchum, moved into recently renovated space on the third and fourth floors of its 1201 Edwards Mill Road building in April. The new office totals 38,467 square feet, and the two floors are connected by an open staircase.
Capstrat CEO Ken Eudy said the need for a new space came about three years ago, when increasing demand for marketing services such as social media and blogging help caused business at the firm to expand. The lease for its office on the first floor of the same building was up in April, so he decided to explore other options.
“Communications have changed. It used to be there were three networks, and maybe if you turned your antenna the right way you could get UNC TV. Now, there are 500 plus channels you might get,” Eudy said in an interview. “For us, it’s been a growth opportunity.”
The new lease was signed in May 2012, negotiated by David Fleming of Jones Lang LaSalle, a commercial real estate services provider in Raleigh. Financial terms were not disclosed.
Eudy said that Capstrat’s revenue has more than doubled since 2009, when it reported $10.4 million. He declined to provide a more specific figure, citing Ketchum’s non-disclosure policy. Capstrat has about 135 employees, up from 65 in 2009.
Ketchum, with more than 2,500 employees and revenue ranging between $400 million and $450 million, has clients in about 75 different countries. Capstrat was acquired to help expand Ketchum’s Southeast presence.
The new partnership has seen benefits on both sides, Eudy said. Both companies have been able to introduce the other to their clients, and Ketchum has helped Capstrat expand its reach overseas.“Many of our clients, even clients who are based here, operate in different parts of the world,” Eudy said. “They help us understand what it means to operate in different cultures, and help us to be mindful of how we advise our clients to operate in different parts of the world.”