Suffolk will have the country’s third-biggest industrial achievement this year when the 3.8 million square foot Amazon robotic fulfillment center soon opens in Northgate Commerce Park, according to Commercial Search’s Industrial Pipeline Report.
The facility represents approximately 76% of the 5 million square feet of industrial space slated to open in the city in 2022.
“In order to support this important facility in Suffolk, an enormous amount of visioning and planning has taken place over the years by members of the City Council, members of the Economic Development Authority and City staff”, Deputy City Manager Kevin Hughes said in a statement. “I can’t say we anticipated building a 90-foot-tall, 3,800,000-square-foot facility in our years of planning and preparation, but it’s gratifying to know that the efforts of many allowed us to be able to accommodate it.
Amazon’s $230 million robotic fulfillment center, which will employ about 1,000 people, will be Virginia’s second-tallest building after the Pentagon and the state’s largest industrial building.
Nationally, up to 592.5 million square feet of industrial space is currently under construction, according to Commercial Search.
The report also ranked the 20 U.S. industrial markets with the most industrial space currently under construction looking at which regions of the country are seeing the most development. Dallas, Phoenix and Indianapolis top the list.
Giga Texas, owned by Tesla and operating in Austin, Texas, is expected to have the largest industrial completion of 2022 with 4.28 million square feet of industrial space, followed by a 3.8 million Amazon fulfillment center. square feet in Detroit.
Tesla’s opening is scheduled for Thursday and should have 15,000 people on hand, according to the report.
Seven of the top 10 industrial projects expected to come online in the United States this year are Amazon-related.
Only one other fulfillment center in the top 10 is not owned by Amazon – Walmart’s 2.77 million square foot facility in Ridgeville, South Carolina. In 2021, the top 10 industrial completions were all warehouses owned or leased by Amazon.
But Suffolk is probably not done with large distribution centers.
City Council is expected to pass a resolution on Wednesday to seek an allocation from the Commonwealth Transportation Board’s Economic Development Access Program for a 1.5 million square foot distribution center, currently known as Project Coastal, from an unnamed Fortune 50 retailer, to be located off Enterprise Drive along U.S. Route 58 in the Virginia Port Logistics Park. The Fortune 50 represents the 50 largest companies in the United States
The project “provides new private investment in land, buildings and distribution equipment that will create substantial jobs”, according to the draft resolution submitted to the council.
According to council agenda papers, the city has been shortlisted as a potential location for a new import warehousing distribution operation in the Virginia Port Logistics Center.
But because the site does not have adequate road access, the business would need help constructing the road for the proposed distribution center, and the program is designed to provide the financial assistance to attract new businesses. .
It could provide up to $850,000 for the project, and it requires city matching of up to $150,000 for estimated eligible project costs over $700,000 and up to $1 million.
Target already has a 1.8 million square foot distribution center in the city off Manning Bridge Road and Route 58 in Westport Commerce Park. It opened in 2003.
Massimo Zanetti Beverage USA recently opened its 355,933 square foot distribution center in Virginia Port Logistics Park, which will also be the site of GXO, a division of XPO Logistics which leases a 348,500 square foot building. A building of 307,200 square feet will also be leased there by a new tenant on the market, and another building of 278,600 square feet will be leased by an expanding tenant.
Other sites under development include Portside Logistics Center in North Suffolk, Coastal Logistics Center off Route 58 Bypass and Carolina Road, Westport Commerce Park off Route 58 and Manning Bridge Road and the Virginia Distribution Center off Benton Road.