Logistics property update: October 2021
Key newbuilds and acquisitions from the frontlines of the logistics property market
Amazon open another flurry of new warehouses and fulfilment centres
Recent Amazon announcements include:
- The opening of a new warehouse in Peterborough, UK, which will take over a former Debenhams warehouse, as Amazon prepares to cope with the holiday surge. This will be the fourth centre for Amazon in Peterborough and will support their primary warehouse in the area on the adjacent site. The warehouse is located at Kingston Park in Hampton.
- The opening of a 1.3 million sq ft fulfilment centre in Visalia, California, on Riggin Avenue and Kelsey Street in the Visalia Industrial Park.
- Plans to operate a new robotic fulfilment centre in Temple Terrace, Florida, sitting at 465,000 sq ft. This will be the eighth Amazon fulfilment centre in Florida.
- The start of operations at their centre in Columbia County in Georgia. This stands at 450,000 sq ft, and is located at White Oak Business Park, between Appling and Harlem, near Interstate 20.
- Further investment in Las Vegas, with a delivery station on Las Vegas boulevard. The facility stands at 147,000 sq ft and is located at 650 E Owens Avenue, North Las Vegas.
- The announcement of a new robotics fulfilment centre and delivery station in Elkart County, Indiana. They are expected to open in 2023, and the fulfilment centre will stand at 800,000 sq ft.
- Choosing Canton, Ohio as the home of a new 1 million sq ft facility. The centre will open in 2022 at 3550 Columbus Road NE in Canton.
However, in Basingstoke, a UK local council has blocked plans to reportedly build the largest Amazon warehouse in the country. The plans were to build a 58,000 sq m logistics warehouse near Junction 7 of the M3, but have been blocked due to the destruction it would bring to local biodiversity.
Port of Tyne opens net-zero warehouse
The Port of Tyne is now operating a Net Zero Port Centric Warehouse, run entirely using clean energy from renewable sources.
Warehouse 21 will be used by a wide range of the Port’s 3PL customers. The warehouse is equipped with electric vehicles to power all internal materials handling, powered through renewable sources.
As part of Tyne 2050, the Port’s transformation strategy, more than £2 million has already been invested into new clean energy assets and logistics facilities.
Lineage Logistics opens fully automated facility in Portsmouth, Virginia
Lineage Logistics have announced the opening of its newest fully automated facility, located near the Port of Virginia’s Virginia International Gateway, which offers an integrated network of highways, air, rail and sea services.
The cold-storage warehouse is the newest of 22 fully automated facilities Lineage operates nationwide. It stands at just under 170,000 sq ft.
ShipMonk expand to Mexico
E-commerce fulfilment and technology solution provider ShipMonk have announced international expansion with the acquisition of a fulfilment centre based in Tecate, Mexico. This is ShipMonk’s first warehouse facility outside of the US.
The warehouse is situated in El Bajio Industrial Park, less than 20 miles from the San Diego, CA Otay Mesa border crossing.
Ryder to acquire Midwest Warehouse and Distribution System
Ryder System, Inc. have announced the acquisition of the outstanding equity of Midwest Warehouse & Distribution System. Based in Woodridge, Illinois, Midwest provides warehousing, distribution and transportation systems.
Midwest operates nine multi-client and eight dedicated-customer warehouses in five regions, primarily in the Chicago area.
The warehouse space totals approximately seven million sq ft.
Bailey’s Moving & Storage Open new Warehouse
To accommodate the needs of more customers, Bailey’s Moving & Storage have opened a new warehouse in Salt Lake City, Utah. This opened on October 18.
The warehouse is 141,000 sq ft.
HGR expands with new warehouse
HGR Industrial Surplus are opening a new warehouse in Fort Worth, Texas, to provide faster transport for customers in the South.
The warehouse will be at 184,723 sq ft, and is located at Junction 20, 35.
Stord open new Vegas warehouse
Stord, a cloud supply chain provider, have announced the opening of a new warehouse in Las Vegas. The warehouse is 177,238 sq ft and will serve Stord customers in the Southwest and across Northern California.
The warehouse will be Stord’s fourth first-party facility, with the three others located in Atlanta, GA, North Haven, CT and Reno, NV.
West Coast Cold Storage opens new facility
West Coast Cold Storage have announced a new 127,000 sq ft cold storage facility, located in Jurupa Valley. This will offer tenants flexible storage solutions, as well as easy access to surrounding major freeways, for delivery throughout Southern California.
The facility will have 70,000 sq ft of freezer space, and 50,000 sq ft of cooler space.
Weber bring first manufacturing centre to Europe
Weber Inc. have announced the opening of its European-based manufacturing and distribution hub, located in Zabrze, Poland.
The centre is the company’s first manufacturing facility outside the United States. It is approximately 50,000 sq m and opened on October 8.
Shipfusion expands in West Coast with new Vegas warehouse
Shipfusion have announced a new expansion of their e-commerce company with a 246,000 sq ft fulfilment warehouse, with 30,000 sq ft of temperature-controlled storage.
The warehouse is strategically located within 5 miles of FedEx, UPS and USPS sorting facilities, and allows for 1-day ground shipping to the greater Los Angeles area.
Kroger Delivery expands with new fulfilment centres
Kroger have announced that it is expanding with new fulfilment centres powered by the Ocado Group. This is part of its mission to double their digital sales by the end of 2023.
The new warehouses include a new customer fulfilment centre in the Northeast, two in California, and two in South Florida.
Walmart bring new high-tech distribution centre to Spartanburg
Walmart have announced plans to build a new, high tech distribution centre for fresh and frozen groceries in Spartanburg County, South Carolina. The warehouse is set to open in 2024, and will stand at 720,000 sq ft.
KKR acquire Papago distribution centre in Phoenix
KKR, a leading global investment firm have announced acquisition of a 226,000 sq ft distribution warehouse in the Papago industrial park, located in the Southwest Valley of Phoenix, Arizona.
The property has been recently renovated and is situated in close proximity to Highway 202 and the I-17.
GS foods opens new distribution centre in Missouri
GS Foods Group have opened operations in Wright City, Missouri. The new distribution facility will delivery products to the school districts throughout the state.
Radial opens fulfilment centre in North East, Maryland
Radial, a bpost group company, have announced the opening of its newest fulfilment centre in North East, Maryland. It stands at 716,490 sq ft.
GTIS Partners announce $248 million transaction in Brazil logistics real estate
GTIS Partners, a real estate private equity firm based in New York City, have announced the completion of the acquisition of $248 million in real estate assets in the metropolitan area of São Paulo.
The assets are logistics warehouses and include Centro Logístico Embu (66,521 sq m), Distribution Center Barueri (90,484 sq m), Distribution Center Cajamar (102,650 sq m), and Distribution Center Rodoanel (77,587 sq m).
New Whole Foods distribution centre could be coming to Texas
Project details have emerged for a 132,942 sq ft Whole Foods distribution centre in Manor, Texas. The flagship Whole Foods Market location is already located in Texas, at 525 Lamar Blvd in downtown Austin.
Britain could run out of warehouse space within a year
Property agent Cushman & Wakefield have said that the UK could run out of warehouse space within a year, fue to supply chain disruption and the boom in online shopping.
They say available warehouse space in the UK has fallen below 50m sq ft, which is the lowest since Cushman started tracking the sector over a decade ago.
This is roughly the same amount of space already taken up by businesses in the first nine months of this year, said Cushman.
Ultra-fast grocery delivery company takes on three warehouses
Ultra fast grocery delivery firm Getir has snapped up three warehouses on the six-unit 110,925 sq ft Waltham X warehouse scheme developed by Railpen and Wrenbridge in Waltham Cross, London. These are in the hopes of fulfilling the company’s promise of delivering groceries to customers within 10 minutes of ordering.