Logistics property update: August 2021
Key newbuilds and acquisitions from the frontlines of logistics property
Topshop distribution centre bought by US property giant for record-high price
A former Topshop distribution centre in Milton Keynes has been bought by a US subsidiary of property giant CBRE, in a deal that marks a record land price for a UK warehouse.
The site has been bought by Trammell Crow for £38 million, equivalent to £2 million per acre.
The buyer intends to demolish the facility and replace it with three new warehouses by the end of 2021, equipped with solar panels and charging stations for the electric vehicles that it expects will use the site.
The high price underscores the huge demand for distribution centres at present, due to the booming demand for online deliveries.
IKEA confirms move to new Dartford warehouse
IKEA is moving into a new 450,000-sq-ft warehouse in Dartford, this will not be a customer facing store. The site is instead set to serve IKEA’s stores across the UK.
The furniture company have confirmed they have signed a 15-year lease with developers for the warehouse, which is located at the former Littlebrook Power Station site, on the south bank of the River Thames.
The site also houses an Amazon warehouse, whose 2.3 million-sq-ft distribution centre is next door.
£100 million industrial development underway near Grantham
A £100 million industrial development near Grantham has been given the go ahead by South Kesteven District Council. The site will house three large warehouses.
The project is being proposed by Carta Real Estate, and is located at Spittlegate Level, sitting to the east of the A1.
The site is 26 hectares and will house 86,400-sq-m of warehouse space.
John Lewis takes on new warehouse to meet growing online demand
John Lewis signed a deal this month to lease a 1 million-sq-ft distribution centre from supermarket giant Tesco to help meet growing online demand.
The warehouse is located in Milton Keynes, north-west of London. It will be its second largest centre, with their two million-sq-ft-warehouse located just four miles away.
John Lewis plans to start operating the warehouse, which is under and 11-year lease during summer 2022.
Amazon moving into huge new warehouse in Rochdale
Amazon is taking over a 20,000-sq-m (215,278 sq ft) warehouse on Kingsway Business Park in Milnrow.
The warehouse will serve shoppers in the Rochdale area, and the new ‘delivery station’ which is part of the warehouse will ‘power the last mile of our order process’, an official statement from the business said.
It is expected Amazon will be settled in by Autumn.
Sainsbury’s distribution centre confirmed for Medway City Estate
In a new £24 million industrial park near Rochester, Sainsbury’s is proposing to open a huge new distribution centre.
The unit is currently under construction, and will be used as a warehouse and distribution hub for both the supermarket and Argos.
The development is being run by M2CityLink.
D&D Ingredient Distributors improve handling and storage capabilities with new facility
Ingredients sourcing firm D&D Ingredient Distributors Inc. have said they are expanding their footprint with the addition of a new warehouse and transloading facility.
The new, 62,500-sq-ft warehouse will feature an automated inventory management system and up to 6,500 pallet positions. It will be located at the company’s Delphos, Ohio manufacturing site.
The company’s Delphos site has three transloading locations that are connected to the Chicago, Ft. Wayne, and Eastern Railroad (CFE).
Amazon opening large new Wakefield warehouse
The global online retailers are opening yet another new warehouse, which will occupy the Wakefield515 development near Knottingley.
The site was secured prior to the project being completed, but the developers, Caddick Construction, have said in a press release that the site’s ‘superb location…makes it an ideal hub for any logistical client.’
The new warehouse is on a 28-acre plot, with sustainable features such as rainwater harvesting and LED lighting.
ASOS plans fifth warehouse to reduce delivery times
ASOS are reportedly planning a fifth warehouse in order to cut delivery times for their customers. They are currently hunting in continental Europe as they seek to capitalise on the internet boom in the wake of the pandemic.
Though this is in the early planning stages, ASOS already has depots in the UK, Germany and the US, with its warehouse in Lichfield expected to open next year.
Amazon announces fulfilment centre in Eastern Leon County, Florida
Amazon has announced a new robotics fulfilment centre in Leon County, at Mahan Drive and I-10. Construction is set to being in September and completed late 2022.
The new fulfilment centre will be 630,000 sq ft and will be the largest facility of its type in Tallahassee and surrounding counties.
The centre is a $200 million investment by Amazon and will contain advanced robotics that will pack and shop small items like books, toys and electronics.
Amazon have also announced plans to open a fulfilment centre in Port St. Lucie, Florida. The site is due to open in 2022. The facility will be over one million sq ft and will employ over 500 people.
Online Retailer Thrive Market opens third fulfilment centre
Natural grocer, Thrive Market, have opened a new Pennsylvania fulfilment centre, giving them one-day shipping capability in the Northeast.
The facility is located in Hanover Township, Pennsylvania, and is 458,000 sq ft. It will enable one-day carbon-neutral shipping for Northeast regions including New York and Boston.
Walmart plans distribution centre in Charlotte, North Carolina
Walmart plans to build a 1 million-sq-ft fulfilment and distribution centre at 386 Old Murdock Road, in Troutman in Iredell County. This is about 35 miles north of Charlotte, off Interstate 77, and is located less than a mile from Exit 45 off I-77.
The facility is due to open in late September, and products will begin shipping out from mid-October.
The building was purchased for $69 million, and is on a 155 acre industrial park. The building also features a 36-foot clear height and 238 dock-high doors.
Amazon Air launches air cargo hub in Northern Kentucky
Amazon Air have invested $1.5 billion in Cincinatti/Northern Kentucky International Airport, which will serve as Amazon Air’s primary US hub for its air cargo network.
The area will be over 600-acres, and will facilitate the rapid transport of customer packages across the US. There will also be an 800,000-sq-ft sortation building, which will feature robotics technology to move and sort packages, and a solar rooftop.
Penguin Random House opening fourth distribution centre
Penguin Random House is opening its fourth US distribution centre in Hampstead, Maryland. The company’s largest US distribution centre is currently located in Westminster, Maryland, making the new Hampstead centre the publisher’s second location in Carroll County.
The space is located at 630 Hanover Pike and is 1 million sq ft of space. It will support Penguin Random House’s nationwide focus on growth.
Convoy of Hope moving into new distribution centre in Republic
Convoy of Hope, a non-profit organisation aiming to provide relief around the world, are moving into a new distribution centre in Republic, Missouri. The new distribution centre can hold 15,276 pallets.
The new facility is located on a 135-acre piece of property which is owned by the company. The facility is close to 60 and Interstate 44, meaning easy access and ability to move supplies quickly.
Previously, the organisation has been in a warehouse on Patterson Avenue in north Springfield, with a separate distribution centre in Ozark. These two operations will now be housed in the new facility.
Frito-Lay to build distribution centre in East Fishkill, New York
Frito-Lay have taken over a former IBM property in east Fishkill, now called the iPark.
The company, a subsidiary of PepsiCo, plans to construct a 150,000-sq-ft fulfilment centre, and are investing more than $100 million in the project.
Penzance to break ground for industrial site
Penzance, a Washington, DC based real-estate firm, are opening their new development at 16220 Wright Road, Williamsport, Maryland at the beginning of September.
The distribution centre consists of an 825,000-sq-ft warehouse with 495 car parking spaces and 217 trailer drops. The location has direct access to Interstates 81 and 70, two key highways used to transport goods along the East Coat and across the US.
Amazon open large warehouse in Delaware
Amazon have opened a five-storey, 3.8 million-sq-ft facility in Delaware.
The giant warehouse is located on Boxwood Road, and is at the site of a former General Motors plant. It opened in August.
Amazon warehouse to open in Turlock, California
Amazon are also opening a one million-sq-ft fulfilment centre in Turlock, California. The warehouse is currently under construction, and should open in mid-2022.
The site is roughly 75 acres, and is located off Fulkerth Road, just west of Highway 99 in the Turlock Regional Industrial Park.
Kroger and Ocado open Florida fulfilment centre
Supermarket chain Kroger and online grocer Ocado have opened a customer fulfilment centre in Groveland, about 30 miles from Orlando.
The site broke ground in January 2019, and is 338,000 sq ft. It is set to support the packaging and shipment of groceries for home deliveries this summer.
Canary Islands’ Amazon fulfilment centre under discussion
Amazon are looking into the potential for opening a large fulfilment centre on the island of Gran Canaria. They are currently looking for land around one of the various industrial areas near the main airport, at Gando.
This is chosen because of the archipelago’s privileged geographical location, which is an Atlantic oceanic tricontinental gateway.
No decisions have officially been made as of yet.
British Land focussing on retail and fulfilment projects
British Land, a UK property company, has been sharpening its focus on office campuses and retail and fulfilment projects through recent acquisitions and sale of properties worth £350 million.
Acquisitions include the purchase of Peterhouse Technology Park, which houses the headquarters of British chip designer Arm. The focus underscores the pandemic-induced surge in online shopping which has driven up the need for fulfilment centres and faster transport of goods in urban areas.
Amazon India expands in Telangana
Amazon is expanding around the world, now setting up its fifth fulfilment centre in Telangana, India.
This takes up the e-commerce giant’s footprint in the state to over 1 million sq ft. The new facility is over 200,000 sq ft.
The latest expansion would result in a 35% increase in overall floor area and 25% rise in overall storage capacity that Amazon has in the county, and is part of Amazon India’s plan to ramp up national storage capability by close to 40% in 2021.