Top Distribution Center Site Selection Trends for Q2 2020

by Josh Bays, on Sep 23, 2020 9:48:42 AM

Note from the author: This research contained in this trend report does not reflect the full effect of the COVID-19 pandemic. Site Selection Group anticipates those trends to become more apparent in second quarter data.

Site Selection Group closely monitors national distribution center investment activity, as well as trends related to real estate, economic incentives and workforce. During the second quarter of 2020, publicly announced distribution center projects in the United States created at least 6,274 jobs at 71 facilities. These projects include well-known companies such as Amazon, Ross Stores, Associated Wholesale Grocers, and FedEx.


Notable Distribution Center Announcements

Company Metro Area Capital Investment ($M USD) # of Jobs
Associated Wholesale Grocers Memphis, TN $300.0 79
Cargill Eddyville, IA $210.0 14
Aircraft Solutions USA Kinston, NC $100.0 475
Carbonlite Industries Orlando, FL $80.0 Undisclosed
Medline Industries Savannah, GA $70.0 150
Ross Stores Columbia, SC $68.0 700
Prime Beverage Group Charlotte, NC $68.0 231
The Coca-Cola Company Indianapolis, IN $55.0 Undisclosed
Menard Cleveland, OH $54.0 90
Parallel Products of New England Providence, RI $50.0 Undisclosed
Fedex Corporation Denver, CO $36.0 100
Unix Packaging Hickory, NC $19.0 226 Wilmington, DE Undisclosed 1,000 Albuquerque, NM Undisclosed 1,000
United Parcel Service Philadelphia, PA Undisclosed 352
Americold Realty Trust Providence, RI Undisclosed 200
Americold Realty Trust Lancaster, PA Undisclosed 200 Madison, WI Undisclosed 25
Uline Ontario, CA Undisclosed Undisclosed
Omni Logistics Boston, MA Undisclosed Undisclosed

Source: Conway Analytics

Larger markets remained active

Over the past quarter, distribution center operators have announced projects all across the country. There was substantial activity in larger markets like Dallas and Atlanta, while mid-sized markets also remained active.

While this data is not completely comprehensive, it is an accurate proxy for areas of the country that have experienced the most activity.


Economic incentives continue to be meaningful to the distribution industry

The following table highlights notable economic incentive packages for distribution center projects. For these notable projects, economic incentive packages averaged 19% of the estimated project capital investment and were also clustered around large distribution-intensive markets.

Notable Distribution Center Economic Incentives Deals

Company Metro Area Incentive ($M USD) Investment ($M USD) New or Retained Jobs
Deutsche Post Memphis, TN $2.4 $20.8 105
Dollar General Cincinnati, OH $1.3 $26.0 65
Quality Logistics (Longship Logistics) Lexington, KY $1.3 $4.3 155
BuildMyPlace Louisville, KY $1.1 $15.3 100
Artistic Weavers Fresno, CA $0.8 $21.0 64
Meijer Companies Dayton, OH $0.8 $160.0 290
Puyang Refractories Group Company Cincinnati, OH $0.6 $5.5 32
Santarosa Holdings Buffalo, NY $0.5 $2.2 11
The Home Depot Scranton, PA $0.5 $0.0 500
Project Cyclone Jacksonville, FL $0.5 $10.1 643
Rural King Waverly, OH $0.4 $17.0 75
Forager Group Chicago, IL $0.4 $1.3 40
American Nuts Akron, OH $0.3 $4.4 60
Medline Industries Savannah, GA $0.3 $70.0 150
General Airframe Support Roswell, NM $0.2 $0.0 16
Dothan Warehouse Freezer Storage Dothan, AL $0.2 $14.0 70
Artistic Holiday Designs Fort Wayne, IN $0.1 $0.0 12
Dollar General Zanesville, OH $0.1 $18.5 813
Project Gauge Charlotte, NC $0.1 $5.1 86
Markee Fashion & Design Flint, MI $0.1 $0.0 5

Source: Incentives Monitor

Topics:Distribution CentersEconomic IncentivesReal EstateSite Selection GroupSite SelectionLocation Advisory



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