Amazon to Build Multistory Distribution Centers Across the U.S.

Amazon to Build Multistory Distribution Centers Across the U.S.

It was announced recently that the e-commerce giant, Amazon has plans to build multistory distribution centers in several U.S. locations. Though Amazon has not publicly confirmed, there is evidence of four nearly identical plans to build four-story warehouses totaling approximately 2.5 million square feet of commercial real estate.

In the suburbs of Milwaukee, plans have already been approved in Oak Creek for one of those distribution centers on a 75-acre site located in Ryan Road Business Park. The multistory facility using the code-name Project Arrowhead, will also include 47.2 K square feet of office space. It has been reported by News-Observer that a similar multistory facility is going to be built in Garner, North Carolina.

In Bakersfield, California Amazon purchased a 64-acre lot in the Landings Logistics Center. Although purchased through an LLC, the Kern County Administrative Office confirmed the plans for a 2.5 million square foot center. Project Hotdish is located in the Minneapolis-area and projected to be similar in size as the multistory facility slated to be built in Bakersfield.

All four multistory distribution centers will employ between 1,000 and 2,000 people and in Garner, NC this will be the largest employer in the area, surpassing the local school district who employs approximately 800 people.

In the recent past, multistory facilities have not made financial sense with restrictions on clearance and truck activity, however in dense metro-areas like Atlanta or New York where space is limited, these types of modern facilities are being made to work by developers. Amazon’s distribution centers are different than the typical commercial facility, as they are located in suburban areas. The square footage and building height are both greater than what they have built in the past, however, as Amazon continues to be the biggest force in retail and logistics, it makes sense.

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