May 14, 2015
A ProLogis facility in Tracy, which is part of a development called the International Park of Commerce, will have 40-foot ceilings, a hike from the 32-foot ones that most of these structures usually call for. This can set the bar apart from attracting sought-after tenants such as Amazon.com and Walmart.
The Tracy building, at one-million square feet is being built on spec, so hopes are that it will grab a big name. From it’s track record, it’s easy to bet that ProLogis has the correct strategy.
What’s apparently driving this is the e-commerce boom. Retailers and stores that sell online are seeing a dramatic rise in sales, meaning that they need more space for their products. A ProLogis executive says that retailers selling online need three times the amount of space than a typical brick-and-mortar retailer, though, other than Amazon and Zappos, most of the successful firms selling online have physical stores.
It looks like the trend is for taller and bigger warehouses. Do we have the space?