Building up, not out: Prologis to open first 3-story US distribution center

San Francisco-based Prologis — the largest warehouse owner in the world — plans to build a three-story, 580,000-square-foot warehouse outside of downtown Seattle, reported The Wall Street Journal.

The building, slated for completion in 2018, will look like two warehouses stacked on top of one another, according to the report. The facility will contain a truck ramp leading to loading docks on the second floor. The third floor, accessible by a freight elevator, is intended to house lighter-scale warehouse operations.

While multi-story warehouses are common in various countries throughout Asia and Europe, Prologis' warehouse will be the first of its kind in the U.S.

"Major urban areas are running out of industrial space," said Hamid Moghadam, CEO of Prologis. "The only way the logistics sector can compete is with this more dense format."

Prologis has not secured tenants for the Seattle warehouse, but hopes to set leases within a year of the facility's completion. The company is also considering other densely developed areas to build multi-story warehouses in, including New York City, the San Francisco Bay area and Los Angeles, according to the report.

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