The Peninsula Industrial Pros

Your Commercial Real Estate Source in the San Francisco Bay Area

Prologis to Build First Multistory Warehouse in the U.S.

Developers are having a harder time finding space for new warehouses in increasingly crowded and expensive U.S. cities. Their answer: build upward.

Prologis Inc., the world’s biggest warehouse owner, is starting construction next year on a three-floor 580,000-square-foot warehouse just outside downtown Seattle that is scheduled to be completed in 2018, the company told The Wall Street Journal. The building will look like two warehouses stacked on top of each other, with a truck ramp to loading docks on the second level and a third floor, accessible via freight elevators, for lighter-scale warehouse operations.

It will be the first building of its kind in the U.S., though multistory warehouses are already common in countries like Japan and Singapore, as well as elsewhere in Asia and Europe, where vacant land is harder to find.

 In the U.S., plenty of open space is available in rural areas and suburbs. But as e-commerce sales grow, many retailers are bringing warehouse operations closer to their customers, who increasingly demand speedy delivery. Available warehouse space has hit record lows in many urban markets in the U.S., driving up the value of industrial land and pushing rental rates to new heights.

“Major urban areas are running out of industrial space,” said Hamid Moghadam, chief executive of Prologis. “The only way the logistics sector can compete is with this more dense format.”

Read entire Wall Street Journal article here.

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This entry was posted on November 2, 2016 by in Industrial, National.
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