“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.
Amazon (NASDAQ: 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 the port.
FreightWaves 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.
Brokerage Compliance Symposium
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
F3 Awards Dinner
The night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
F3: Future of Freight Festival
Industry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The day before F3. Every compliance issue you face - fraud exposure, carrier liability, FMCSA rules, cargo theft, insurance gaps - navigated by attorneys and operators defining best practices in a changing industry.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowThe night before F3. FreightTech100 companies honored. FreightTech 25 and Shipper of Choice winners revealed live. Cocktail reception into dinner and live music - 300 industry leaders in one purpose-built room.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register NowIndustry-defining keynotes, rapid-fire technology demos, and industry leaders networking in experiences across Chattanooga - plus the inaugural F3 Awards Dinner featuring the FreightTech and Shipper of Choice reveals.
The Signal at Chattanooga Choo Choo • Chattanooga, TN Register Now