Market Insights

As Warehouses Get Bigger and Costlier, Here’s Where Some of Target’s Largest Are Located

Warehouses are getting bigger and more expensive as e-commerce expands – and with it, retailers’ need for light industrial properties to store the products their customers want and deliver them as quickly as possible.

But the existing supply of warehouses can’t keep up with demand, especially in the major urban centers that are heavy consumers of e-commerce. The result? A surge in construction of bigger and better facilities.

In October builders spent more on U.S. warehouse construction – $2.7 billion, to be precise – than at any point since the census began keeping track in 1993, Bloomberg reported.

And these are not your grandmother’s warehouses.

The average size of a warehouse completed in 2017 was 188,000 square feet, more than double that in 2001, CBRE has found. Experts say many include thicker concrete floors to support the heavy machinery needed in today’s automated warehouses.

Demand for bigger warehouses is being spurred by brick-and-mortar retailers such as Target, which are stepping up efforts to compete with e-commerce giant Amazon. Target acquired transportation-technology company Grand Junction and grocery delivery firm Shipt last year to improve its delivery capabilities, but with about 40 distribution centers, it remains well behind Amazon.

Below are a select few Target warehouse or distribution facilities in various cities. Note that though none of the warehouses listed below are new, they are all over 900,000 square feet. (Data provided by CrediFi and supply chain and logistics company MWPVL International.)

Tucson, AZ

Target owns a 971,480-square-foot warehouse at 8940 E. Rita Park Drive in Tucson. The retailer purchased the facility in 2007 for $3.6 million.

Phoenix, AZ

Another Target distribution center in Arizona is located at 7101 W. Van Buren St. in Phoenix. The 1.5 million-square-foot facility was purchased in 2001 for $8.4 million.

Fontana, CA

The regional distribution center at 14750 Miller Ave. in Fontana, 50 miles east of L.A., is 1.4 million square feet and has been open for about three decades.

Pueblo, CO

The 1.5 million-square-foot regional distribution center at 34800 United Ave. in Pueblo, 116 miles south of Denver, was built in the 1980s at 1.1 million square feet and later expanded.

Memphis, TN

The e-commerce fulfillment center at 5461 Davidson Rd. in Memphis is 900,000 square feet and helps Target fill Internet orders in the Southeast.

To find out more about industrial properties across the U.S., click here.

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