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Prologis has built the nation’s first multi-level warehouse. Will the tenants come?
Logistics development company Prologis has built the first multi-story industrial warehouse in the U.S. just south of Seattle. Other multi-story warehouses have been planned or proposed in New York City, San Francisco and Los Angeles as growing e-commerce demands faster deliveries.
Key findings
“Building a two-story structure can cost $150 per square feet more than the traditional single-level facility because of higher material and construction costs that come with double-decking.”
Many older, existing warehouses close to urban centers do not support modern day delivery fulfillment needs because of their narrow layouts and shortage of loading docks.
The concept of multi-story warehouses is common in Asia, where industrial land is expensive, and building vertically is the only option to meet consumer demands.
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