Monday, August 29, 2016

Biggest Starbucks Warehouse in the World Opening Next Month in Pennsylvania

When all 1.2 million square feet of its newly expanded distribution center in York County, PA become fully operational next month, Starbucks said the Trade Center 83 complex in central Pennsylvania will become its largest distribution center in the world.

The Seattle-based firm said its York Distribution Center expansion will increase capacity by 35% and will help ensure that baristas in more than 3,000 Starbucks stores throughout the Northeastern U.S. and parts of Canada and Europe remain fully stocked of Pumpkin Spice Latte and the rest of its caffeinated elixirs.

Texas-based Hillwood Investment Properties astutely acquired the 95.3-acre tract adjoining the Starbucks bean roasting plant in East Manchester Township for $12 million in 2014 and immediately announced plans to build the 1.2 million-square-foot speculative warehouse, betting that sooner or later Starbucks would need more space.

Earlier this year, Starbucks agreed to take the entire building located at 1605 Bartlett Dr. under a 10-year lease. The expansion will enable Starbucks to move its distribution operations out of the roasting plant, where its roasted more than 3 million pounds of coffee each week since 1995.

The facility features 36-foot clear-height ceilings, a cross dock configuration and dual driveway for multiple tenants and parking for up to 288 cars and 657 trailers.

"As we looked at our long-term growth plans for the business, and the current demands for distribution at scale, we needed to invest in additional capacity," said Jim Wells, vice president of Starbucks Distribution and Supply Chain Operations. "Since opening our roasting facility here in 1995 with just a handful of people, we now have more than 500 full-time partners with plans to hire 300 more over the next three to five years. There's no better location to continue to grow our business and create jobs and economic development."

Gary Frederick, senior vice president and market leader for Hillwood’s Northeast U.S. industrial business, said he expects the success of the large spec project will attract more distribution development in the area.

"Central Pennsylvania’s continued growth creates an ideal area for logistics operators to expand their presence," Frederick said. "With numerous sites under construction, Hillwood sees continued growth and steady demand for industrial space in the market."
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