The largest two-story fulfillment center in the country will be under construction later this year in the Bronx, NY, with a planned 2021 opening, enabling ecommerce tenants to service the New York metro market with same-day delivery.
The facility, being developed at 2505 Bruckner Blvd. by Innovo Property Group and Square Mile Capital Management, will total 969,000 square feet, including 595,000 square feet of warehouse space and 374,000 square feet of parking. It was the former location of the Whitestone Multiplex Cinemas.
A three-story, 590,000-square-foot fulfillment center was opened last year by industrial real estate giant Prologis in Seattle.
Innovo CEO Andrew Chung said the new facility could serve both as a manufacturing and distribution facility.
“Before now there hadn’t been a need for large-scale urban logistics,” Chung said. “Now with ecommerce, shorter times and shrinking delivery windows, more companies including manufacturers are coming back to urban areas and there’s a greater need.”
Chung said the lack of available land for development in urban areas, the high cost of air rights plus the logistics and economics of serving growing consumer hunger for same-day delivery is driving demand for such multi-story fulfillment center projects. He envisions many more in the near future.
“It’s interesting to watch the battle between Amazon and Walmart for one-day and same-day delivery,” he said. “Marc Lore of Walmart said same-day shipper is cheaper than two-day was, because they’re bringing the product closer to the consumer, sending those items in one box instead of multiple boxes.”
Chung said the new 2505 Bruckner fulfillment center will feature charging stations for electric vehicles, direct loading onto the second floor, panels for solar power and a roof area that will enable drone deliveries, which he sees as an inevitable development.
“Structurally it is more challenging than building a singly-story warehouse, but is substantially simpler than a high-rise tower in the city,” Chung said. “It should also be noted that while multi-story warehouses are relatively new in the United States, they have been developed for many years in Asia where they often go up higher than two stories.”