Rising to the Challenge with the First U.S. Multistory Warehouse
With e-commerce growing and consumers increasingly expecting same-day and next-day order delivery, manufacturers and retailers are on the hunt for warehouse space in urban areas closer to end consumers. This trend is creating a shift in supply chain dynamics.
Now more than ever, land in densely populated areas is targeted for industrial warehouse development. Demand for infill properties is on the rise. Developers who want to offer their customers facilities in the markets that matter most need to rethink the box. In cities with extremely limited development options, sometimes, the only way is up.
April 10, 2017, Prologis broke ground on a three-story, 589,615 square foot (54,777 square meter) multistory fulfillment center in South Seattle. The project, Georgetown Crossroads, is highly visible at the north end of the First Avenue South Bridge. The multistory facility will have ramps for truck access to second-floor loading docks. A freight elevator will link the third floor to ground floor loading docks.
Market conditions are right for construction. Vacancy rates in Seattle are at historic lows. Consumers increasingly expect rapid delivery of online orders. Transportation costs are rising. These factors contribute to retailers and manufacturers choosing to place their e-fulfilment operations in urban locations, in turn reducing truck trips.
Experienced in Innovation
Seattle’s Class-A multistory development is the first of its kind in the U.S. However, Prologis is an experienced multistory developer with projects in populous markets where land supply is limited, such as Japan and China. Prologis urban properties outside the U.S., such as Tokyo’s Zama 2, have garnered recognition for their sustainable features.