“If you build it, they will come.”
They prophesy has come true as a multi-story warehouse building
built in Seattle by commercial real-estate giant Prologis (NYSE:
PLD) has its first tenants: Amazon and Home Depot.
AMZN) will take almost 500,000 square feet of space and Home Depot (NYSE:
HD) nearly 100,000, according to the Wall Street Journal. The three-story building
is reportedly 590,000 square feet and located minutes from downtown Seattle and
previously reported that the first floor occupies more than 239,000 square
feet, has a 28-foot clear height, 130 truck courts, and 60 truck aprons. The
second floor, with more than 170,000 square feet, has a 24-foot clear height
and an elevated 130-foot court served by two ramps that can accommodate big
rigs. Level 3, at more than 180,000 square feet, has a 16-foot clear height and
two loading docks supported by three forklift-accessible freight elevators.
Vertical warehouses are not common in the U.S. – the Seattle
facility may be the first in America – but are growing more popular in Asia and
Europe. Typically, a vertical warehouse allows for more storage of goods closer
to their end destination.
A Home Depot spokesperson told the Wall Street Journal that
was precisely what drove it to Prologis’ Seattle facility. The goal is to reach
90% of its shoppers with same-day or next-day delivery service and the only way
to achieve that is to locate warehouses closer to city centers. With land at a
premium for large, sprawling warehouses, going vertical is a logical solution.
E-commerce is playing a large role in the push to locate warehouses
closer to end customers, as well as low vacancy rates for existing facilities.
At least two other multi-story warehouse facilities are
planned for New York City.
Prologis Ventures, the venture capital arm of Prologis, is
an investor in FreightWaves.
The post Amazon, Home Depot sign on as tenants to multi-story Seattle warehouse appeared first on Logistics Marketing.