Category: Distribution

City confirms Amazon project at former Kmart

Confirmation arrived Friday that Seattle-based e-commerce giant Amazon will convert the former Kmart store on Wilson Road into a “last-mile delivery station” as part of a $20 million renovation project expected to create 200 new jobs when the facility becomes operational later this year. The project, first reported by The Californian in December, elicited praise from city officials who view it as a community asset sure to improve service to residents while also beautifying what some have described as blighted property along a major commercial corridor in south Bakersfield. “This innovative local facility means our community gets even better service when they order their packages online,” Mayor Karen Goh said in a news release sent out Friday. “This announcement also lets business leaders know that Bakersfield welcomes industries and innovators ready to grow and expand in California.”

The news release contained no comment from Amazon, which in recent months has declined to address the project. Last summer the company opened a massive distribution “fulfillment” center just north of Meadows Field Airport. Since then it has announced plans for another such facility in Shafter. Each of those two projects is expected to employ 1,000 full- and part-time employees.

Paperwork filed with the city called for a majority of the former shopping center property’s 128,150-square-foot footprint to remain in place. But it said the shopping center’s eastern portion would be bulldozed to accommodate driving access and parking. The demolition was expected to take out several small businesses that had been operating on the property. The paperwork also said the proposed facility would receive and sort six truckloads of consumer goods per day. Products would then be loaded onto 20 delivery vans and shipped out in staggered departure times to avoid causing congestion.

An Orange County public relations firm that issued Friday’s news release on the city of Bakersfield’s behalf said the property has been purchased by Greenlaw Partners, an Irvine real estate developer. Greenlaw had also been negotiating to buy a separate series of properties near Buck Owens’ Crystal Palace, and people involved in those talks said Amazon was the intended operator. It was unclear whether the company remains interested in those additional properties. The PR firm that issued the news release declined to say whether Amazon expects to open additional last-mile stations in Kern. Greenlaw and Amazon could not immediately be reached for comment. The news release said renovations to the Wilson Road site will benefit the local neighborhood and improve Wilson Road by adding a new parking lot, lighting and attractive landscaping. It said there will be a new roof and bay doors will be installed to accommodate delivery service.

Bakersfield Assistant City Manager Jacqui Kitchen called the project an “outstanding opportunity for Bakersfield.” “Amazon’s new facility will revitalize an empty building in the city that no longer served our residents,” she stated in Friday’s news release. “The conversion of this former big box site into an innovative last-mile e-commerce facility aligns with the changing needs of local consumers and the city looks forward to working with Amazon to help integrate the new operations into our city and provide a significant boost to our local economy.”

Kmart closed its store at the shopping center just west of Highway 99 in early 2017. That was followed by the closure of a Big Lots store located next door. Since then, the owner of an apartment complex to the south has complained that the mostly vacant center has attracted transients who sometimes hop a fence onto its property.

https://www.bakersfield.com/news/city-confirms-amazon-project-at-former-kmart/article_477b4c0a-93d4-11eb-a9a2-675550ce6d36.html

Camping World to open distribution center in Tejon Ranch Commerce Center

Tejon Ranch Co. (NYSE: TRC) is pleased to announce Camping World Holdings, Inc. (NYSE: CWH) as the newest addition at Tejon Ranch Commerce Center (TRCC). Camping World is in the process of relocating operations from their 160,000 sq ft distribution center in Bakersfield to a brand new 389,160 sq ft location within TRCC, and has agreed to a multi-year lease within a 579,160 sq ft building within TRCC owned by TRC and its partner in the building Majestic Realty. “We are happy to welcome Camping World to our ever-expanding Tejon Ranch Commerce Center neighborhood. Their relocation to TRCC is a testament to the value of our central location and adjacency to both Interstate 5 and Hwy 99 – making it the ideal and opportune place for companies wanting to expand in
California to locate their business.” said Joseph N. Rentfro, executive vice president of real estate at Tejon Ranch Co.

TRCC is growing to maximum capacity and remains 100% leased as well as 100% occupied. TRCC’s 1,450- acre state of the art development is located at the junction of Interstate 5 and Highway 99 in Kern County and features 20 million square feet of fully-entitled commercial and industrial space. In addition to Camping World’s recent relocation to TRCC, the commerce center has also enabled recent expansions by existing businesses like Dollar General and IKEA, welcomed L’OREAL, and is also home to the major distribution centers of like Famous Footwear and Caterpillar.

http://tejoncommerce.com/images/news/Press_Release_Camping_World_TRCC_FINAL.pdf

Wonderful Company Adds Amazon to its Tenant Roster at Wonderful Industrial Park

Wonderful Real Estate Development has landed Amazon as an anchor tenant at Wonderful Industrial Park (WIP) on the heels of Walmart Inc. taking occupancy at the industrial commerce park – one of the largest in the Western U.S. Amazon leased a 1 million-square-foot building on 72-acres located at 4500 Express within Wonderful Industrial Park, and joins other large occupiers in the park such as Ross Stores with +3 million square feet on 130 acres, Target’s 2 million square feet on 80 acres and, Walmart at 630,000 square feet and 80 feet of clear height on 60 acres. Walmart’s new state of the art grocery-focused distribution center incorporates the most sophisticated automated sorting equipment and systems in the industry.

With Amazon, WIP is now approaching 10 million square feet of occupied space. Other WIP occupants include Essendant (Staples, Inc), American Tire Distributors, Formica, and Hillman as well as other 3PLs who have found WIP’s location and amenities extremely profitable. “Despite Covid-19, the commercial real estate story of 2020 and the first quarter of 2021 continues to be how hot the industrial market is, with tenants like Ross, Walmart and now, Amazon, choosing to locate these major mission-critical facilities at WIP in consecutive years. It not only validates our location and development model, but adds an exclamation mark to industrial activity across the U.S.,” said Joe Vargas, President of Wonderful Real Estate Development.

In the first quarter of 2021, Wonderful will also break ground on its latest speculative development, 3800 Fanucchi Way. 3800 Fanucchi Way will feature 1,063,000 square feet, 40 feet of clear height, 215-dock high doors, and parking expandable to 1,000 stalls to accommodate trailers and employee spaces. The building will be delivered in the fourth quarter 2021. This facility will be located on a 70-acre site with a building-to-site coverage of 35%.

https://apnews.com/press-release/globenewswire-mobile/business-north-america-vincent-pontare-professional-services-personnel-d9b6dcaf1de131cc221ede35061903ce

Valley counties see demand for warehouse space

As more of us shop online, the demand for warehouse and distribution centers is going up. “E-commerce is drawing a lot of the growth around here. For us, we’re a support business towards that e-commerce, so that’s actually a big piece of our business,” said Christian Ueland, TranPak owner They’re just one of the businesses in the Freedom Industrial Park.Madera County Economic Development officials expect more growth. “We’re seeing a lot of pressure for warehouse space, e-commerce types of facilities, logistics, distribution centers. Just all kinds of warehouse and logistics facilities,” said Bobby Kahn, Madera County Economic Development Executive Director.Bobby Kahn with the Madera County Economic Development says the pandemic accelerated e-commerce and companies are looking for space to keep up and ahead across the country and here in the Valley. Fulfillment centers take 64 million square feet nationwide. “The recent report by CBRE, which is a national real estate company, ranked the Central Valley as the number three growth area in the nation so that just shows the impact the Central San Joaquin Valley is having nationwide, not just here locally, statewide, nationally,” Kahn said.

Why is the Valley so attractive? “If you’re going to be doing commerce or e-commerce, you’re going to be distributing to both ends of the state, it centers you right here in the middle. Secondly, the cost of property and availability of property,” Kahn said. These Projects could bring Jobs and added tax revenues. Madera County says it’s working on projects and partnerships, but we’ll have to wait and see what happens next. Overall, the Central Valley seems to be in the right place to help companies and e-commerce growth in the future.

https://www.msn.com/en-us/money/markets/valley-counties-see-demand-for-warehouse-space/ar-BB1enNDt?ocid=BingNewsSearch

Amazon Signs 1M SF Distribution Center in California

Amazon has filled yet another major order. The king of online sales signed a lease for a 1 million-square-foot distribution center in Central California. It will be the anchor tenant at one of the largest industrial commerce complexes in the Western U.S., according to the landlord, Wonderful Real Estate. The massive industrial park is in the city of Shafter, bordering Bakersfield, and also includes major tenants like Walmart, Target, and Ross Stores.

Amazon’s continued expansion comes as online shopping and e-commerce consumer activity surges in the U.S., further demonstrating the persistent need for warehouse and industrial space. Amazon will use the 72-acre property at 4500 Express Avenue to sort and ship items including apparel, accessories, and footwear. The site will create more than 1,000 full- and part-time jobs that pay a minimum of $15 per hour. The deal also comes shortly after the owners announced that Walmart signed a lease to occupy a 630,000-square-foot, grocery-focused distribution center at the same Wonderful Industrial Park (WIP).  The 1,625-acre distribution center complex is approximately 100 miles north of Los Angeles. It is entitled for 26 million square feet, and nearly 10 million square feet are leased and under operation following the Amazon lease.

The park’s location allows access to 14 percent of the U.S. population within 300 miles, and same-day delivery to 30 million Californians, according to Wonderful Real Estate. The site also boasts access to the Port of Los Angeles, the Port of Long Beach, and the Port of Oakland. The property features a FedEx Ground hub on-site, and is near a UPS ground hub in Bakersfield, where Amazon opened another distribution center last August.  Ross Stores occupies more than 3 million square feet of space, while Target is signed to 2 million square feet of space at WIP. Other occupants include Essendant (Staples), American Tire Distributors, Formica, and Hillman, as well as other third-party logistics companies. “Despite COVID-19, the commercial real estate story of 2020 and the first quarter of 2021 continues to be how hot the industrial market is, with tenants like Ross, Walmart and now, Amazon, choosing to locate these major mission-critical facilities at WIP in consecutive years,” said Joe Vargas, president of Wonderful Real Estate Development, in a press release.

Amazon has been busy around the country, and throughout the state of California. The firm recently announced another new delivery center in Silicon Beach in L.A., and in November, Amazon acquired the Orange County Register’s former printing location for $63.2 million, and plans to demolish it and build a new last-mile distribution warehouse. In the first quarter of 2021, Wonderful will also break ground on its latest speculative development, a 1.1 million-square-foot property at 3800 Fanucchi Way in WIP, which is set to be complete before the end of the year.

Source: Commercialobserver.com/2021/02/amazon-e-commerce-consumer-demand-industrial-distribution-california/

Amazon unveils plan for large distribution center in Shafter

Amazon announced Thursday it plans to open a “fulfillment center” in Shafter by the end of this year that will become the e-commerce company’s second large distribution facility in Kern County. Employing more than 1,000 people full and part time, the more than 1 million-square-foot center is expected to launch by the end of this year, packing and shipping “softline” goods such as apparel and footwear to customers across the region. The location of the new center was not disclosed.

The Seattle-based company said it will be hiring to fill positions at the new facility including human resources, operations management, safety, security, finance and information technology. Employment at the center will pay at least $15 per hour and immediately offer various benefits including a 401(k) retirement savings program with a 50 percent company match. “Amazon is excited to make this investment in Kern County that will support local economic development and help us deliver to our growing number of customers in the region,” Amazon’s director of regional operations, Jordan Nelson, said in a news release. “As we continue to grow in California, we are contributing to the economic recovery in the Southern California and across the state.”

Shafter Mayor Cathy Prout said in Amazon’s news release the company remains competitive and continues to welcome new businesses. “During unprecedented times, cities nationwide are dealing with economic growth or the negative impacts these challenging times bring,” she stated. “For Shafter, this is not the case.” Earlier this year Amazon opened a large fulfillment center just north of Meadows Field Airport.

It has also been negotiating on at least two smaller sites, one in northern Bakersfield and one in the city’s southern portion, where people involved in the proposed transactions say the company hopes to open smaller, more locally focused distribution centers.

https://www.bakersfield.com/news/amazon-unveils-plan-for-large-distribution-center-in-shafter/article_7e9019a8-7248-11eb-acc2-cba0dedc3464.html

Record-breaking demand for warehouse and DC development

Unlike many other segments of the economy, warehouse and distribution center (DC) development is not only withstanding the widespread economic impact of COVID-19, it’s thriving. In fact: It’s red hot. Companies can’t find space fast enough and developers can’t build DCs quickly enough to meet demand. “The market is thriving, and with it, record high transaction volume (new leases, user sales and renewals), record high rents, a vacancy of 4.7%, and 42 consecutive quarters of positive absorption,” reports James Breeze, senior director, global head of Industrial & Logistics Research for CBRE.

Robust demand for industrial product has kept developers busy. “At the end of the third quarter of 2020, more than 312 million square feet was under construction [nationwide] and 37% of this was already preleased—the highest rate of pre-leasing in over a year,” Breeze exclaims. Other noteworthy trends include climbing rents, annual absorption inching close to the 200-million-square-foot benchmark, and record-high deliveries, reports Mehta Randhawa, director of U.S. Industrial Research, Jones Lang LaSalle Inc. (JLL).

As stay-at-home orders lifted, construction activity resumed, and deliveries spiked. Consequently, JLL data indicates that delivery of industrial space hit a record high in the third quarter of 2020, with completions totaling 97.4 million square feet. When all totaled, JLL expects that figure to hit 107.0 million square feet for 2020. “We have seen a speed associated with innovation that was never known to us before COVID,” remarks Matt Powers, executive vice president, JLL. “Supply chain models are being transformed in days instead of months or years.”

Driving this robust development surge is widespread adoption of e-commerce, accentuated by COVID-19. “Most consumers are not only buying more product online; they are expecting it to be delivered in a timely manner,” says Breeze. Consequently, developers are seeing upwards of five years of e-commerce growth in one year—a trend, they say, that’s not going away, Further, companies are looking to carry higher inventory levels given that many incurred lost revenues by not having the inventory to meet demand. “Beyond carrying higher inventory levels to favor resiliency over efficiency in their supply chains, companies are also considering more diversified manufacturing locations,” says Carter Andrus, president of Central Region at real estate investment trust company Prologis. “In some cases, companies have become too efficient without having some buffer or just-in-case stock for events that happen.”

Andrus observes that these two trends have the potential to generate more than 500 million square feet of additional warehouse and DC space in the next two to three years. “This is overwhelming,” he says. “In terms of facility size, we see good momentum in all size categories, although activity has been best above 100,000 square feet with pronounced strength in the big box spectrum, with that being greater than 250,000 square feet.” Earlier in 2020, Prologis saw some softness in spaces below 100,000 square feet, but now market demand for this space is also improving. All of these factors continue to shift supply chain strategies to increase distribution centers throughout the country whether it’s a company shipping directly to the consumer, or the supplier to that company.

According to the seasonally adjusted date from the U.S. Department of Commerce, U.S. consumers spent an estimate $209.5 billion online in the third quarter of 2020. That’s a whopping increase of 36.7% from the same period in 2019 when e-commerce sales made up 11.2% of total sales. Two of the biggest players in the retail world are Amazon and Walmart. Last year, Amazon was said to have over 100 fulfilment centers alone. The company typically builds fulfillment centers to feed regional sort centers as well as DCs, also known as delivery stations. Its fulfillment centers are typically 1 million-square-feet or more.

Walmart, known for running one of the largest distribution operations in the world, has over 190 DCs with more than 143 million square feet, according to global supply chain, logistics and distribution consulting firm MWPVL International Inc. “Market drivers include population growth and competition shortening the last-mile with same- or next-day delivery,” states Powers.

Robert Van Geons, president and CEO Of Fayetteville Economic Development Corp., who promotes activity in his region of North Carolina, observes how onshoring of manufacturing, increased e-commerce and drastically altered consumer demand cycles have significantly increased the demand for warehouses and DC space. “While new product is under construction, it’s nearly impossible to find a large [250,000 square feet+] quality building available between Washington, D.C. and Savanah,” Van Geons reports. “If it has good ceiling height and is close to a major interstate, it is off the market.”

https://www.logisticsmgmt.com/article/record_breaking_demand_for_warehouse_and_dc_development/warehouse

Amazon plans distribution hub at former Bakersfield Kmart

The former Kmart on Wilson Road is slated to become an Amazon distribution hub and the e-commerce giant’s second warehouse development in Kern County. City records show a 123,000-square-foot warehouse proposed at the site would receive and sort six truckloads of consumer goods per day. Products would then be loaded onto 20 delivery vans and shipped out in staggered departure times to avoid causing congestion.

Amazon has been identified as the operator, according to a representative of one of the small businesses ordered by the property’s owner to vacate the site to make room for the new project. An Amazon spokeswoman would not confirm or deny the project. She said by email the company is “constantly exploring new locations and weighing a variety of factors when deciding where to develop sites to best serve customers.”

The property’s owner did not return calls requesting comment Monday. Neither did the project’s applicant at Irvine real estate developer Greenlaw Partners. The city’s Board of Zoning Adjustment in September approved a conditional-use permit to convert the existing, 50-year-old building into a distribution warehouse. Nowhere in materials filed with the city is Amazon mentioned, and a city official said the operator’s name had not been disclosed.

Amazon was similarly stealthy when it was in early stages of developing the much larger “fulfillment center” the Seattle-based company recently opened just north of Meadows Field Airport. In that case, county officials considering the project were unaware the nation’s most valuable retailer was behind it. A majority of the property’s 128,150-square-foot footprint along Wilson Road will remain in place, according to paperwork filed with the city. But it says the shopping center’s eastern portion will be bulldozed to accommodate driving access and parking. The demolition is expected to take out several small businesses operating on the property, including the Golden Ox Diner and a small store owned by the father of Miguel Munoz, who said he was told by the landlord that Amazon had purchased the entire property.

County records give no indication Amazon has bought the center. They show the former Kmart, which closed in early 2017, was purchased in May 2018 by investor Balbir Singh. He sold it in March 2019 to Big J Investment LLC, which is at least partly owned by Singh. County property records show that eight months later Big J sold or transferred the property to itself or a company of the same name. Munoz said his father’s lease doesn’t expire until April but that they have been told to vacate by January. He said the final deadline to move out has changed a few times. A representative of the city of Bakersfield said its Planning Division has not received a project timetable from the property owner or the applicant, Greenlaw.

The warehouse can only improve what has become a blighted property, said Bakersfield real estate professional Frank St. Clair, whose company owns a 257-unit apartment building directly north of the empty Kmart space. “We’re happy to see it go,” he said, adding that transients hanging out at the shopping center sometimes jump a fence onto his company’s property. Singh originally planned to develop an independent supermarket on the site of the former Kmart and the Big Lots next door. His business partners said there was also going to be a banquet hall, a gym and a Dairy Queen at the shopping center. Those plans appear to have been changed.

https://www.bakersfield.com/news/amazon-plans-distribution-hub-at-former-bakersfield-kmart/article_cec64cea-43e4-11eb-8c30-6b0be55c7af1.html?utm_source=bakersfield.com&utm_campaign=%2Fnewsletters%2Fbreaking%3Ffast-method&utm_medium=email&utm_content=headline

SJ COUNTY: LAND OF AMAZON FULFILLMENT

San Joaquin County takes a back seat to no one — except San Bernardino County in Southern California — when it comes to Amazon Fulfillment Centers. With the opening earlier this year of the 746,790 square foot fulfillment center at 3565 North Airport Way in Manteca that’s sandwiched between 5.11 Tactical and Penske Logistics that serves as Lowe’s Northern California distribution center, there are now seven Amazon Fulfillment Centers in San Joaquin County. There are three apiece in Tracy and Stockton.

Those are in addition to the Amazon Prime delivery location on Louise Avenue in Manteca as well as the Amazon cargo operation at Stockton Metro Airport. Amazon is by far the largest private sector employer in San Joaquin County with well in excess of 6,000 jobs. According to FBA Help San Bernardino County is home to eight fulfillment centers. Tied with seven apiece are San Joaquin County and Dallas County in Texas. Riverside County in Southern California has five fulfillment centers. It was not by happenstance that San Joaquin County now has seven Amazon Fulfilment Centers.

The company Jeff Bezos founded is well known for its shrewd logistics chain that allows rapid delivery of customer orders. Much like the Inland Empire that consists of Riverside and San Bernardino counties is the prime logistics hub to serve the greater Los Angeles-San Diego area, San Joaquin County is the same for the NorCal Motorplex with 18 million consumers in and around its anchor cities of San Jose, San Francisco, Oakland, and Sacramento. The San Joaquin Partnership — a private-public organization dedicated to securing employers to locate within the county — for years has touted South San Joaquin County as the emerging Inland Empire for Northern California.

If you toss in the Patterson distribution center just over the Stanislaus County line along Interstate 5, they are seven Amazon Fulfillment Centers in the region that consist altogether of more than 7 million square or the equivalent of 50 Manteca Costco stores at 140,000 square feet apiece. There are a number of reasons why Amazon and other retailers and suppliers with distribution networks are attracted to South San Joaquin County. Manteca, Lathrop, Tracy, and Stockton are roughly equal distance to San Jose, San Francisco, and Sacramento. Interstate 5 — the only freeway that runs from Canada to Mexico — as well as Highway 99 run through here. Interstate 205 provides access to the Bay Area.

There are two major intermodal operations where truck trailers are loaded and unloaded on rail cars. One is the Union Pacific Railroad facility sandwiched between Lathrop and Manteca directly behind the Manteca Amazon Fulfillment Center on North Airport Way. The other belongs to Santa Fe Railroad and is located 10 miles northeast of Manteca on Austin Road. The majority of freight is now moved long distance in such a manner with trucks doing the deliveries on both ends.

Also 10 miles north of Manteca is the Stockton Metro Airport that Amazon Prime jets are using on a daily basis, Unlike San Jose, Oakland, San Francisco, and Sacramento airports there is minimal commercial traffic. The airport also has unparalleled access to freeways. Stockton Seaport doesn’t figure heavily into the distribution scheme but if the marine highway strategy is ever revived to take pressure off of truck movements out of the Port of Oakland by moving cargo containers by barge to Stockton, it could by enough of a magnet to draw distribution centers to the area.

Amazon opted to locate their Amazon Prime in a 91,340-square-foot delivery center on Louise Avenue in Manteca just west of the Manteca Unified School District complex for the same reason firms such as J&M Tractor and Frito-Lay shuttered separate distribution centers in Stockton and Modesto and relocated to a single facility in Manteca. Not only is Manteca 20 minutes away from both Stockton and Modesto but it is also 20 minutes away from Tracy that is closing in on 100,000 residents. That puts Manteca at the center of more than 1.2 million potential Amazon Prime consumers.

https://www.mantecabulletin.com/news/local-news/sj-county-land-amazon-fulfillment/

UPS, Amazon to Lease Space at Visalia Industrial Park in Central California

VISALIA, CALIF. — The City of Visalia and the Visalia Economic Development Corp. have announced two new tenants at the Visalia Industrial Park currently under construction in Visalia. A 425,000-square-foot UPS hub is now complete and construction has begun on a 1.3 million-square-foot distribution center for Amazon.

YS Industrial is also developing two 300,000-square-foot speculative facilities adjacent to Millipore Sigma and near VWR (Avantor). Additionally, current tenants — SORMA, California Dairies and Hydrite Chemical Co. — are expanding their footprints at the industrial park.

https://rebusinessonline.com/ups-amazon-to-lease-space-at-visalia-industrial-park-in-central-california/