New Development Means Easier Distribution For Smaller Tenants

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“Amazon Effect”

You could call it the “Amazon effect,” but it’s actually so much bigger than that. The rise of e-commerce in recent years has transformed the industrial real estate market, placing a greater focus on flexibility, shipping speed, and the cost to transport. A recent development in Edgerton, Kan., is a prime example of how the market is adapting.

“I think Edgerton is the hottest industrial distribution submarket in the country right now,” said Bucky Brooks, principal at Copaken Brooks. “We’re excited to develop a new option for slightly smaller tenants who want to take advantage of the prime location.”

Midwest Gateway

Midwest Gateway, the latest industrial development from Copaken Brooks, is located immediately adjacent to the entrance of Edgerton’s BNSF intermodal yard, and joins several e-commerce neighbors, including Amazon, UPS and Covering 30 acres, the speculative project includes two adjacent, first-generation distribution facilities – 301,603 square feet and 186,107 square feet – which will begin accepting tenants at the end of 2017.

Brooks said the slightly smaller size of the Midwest Gateway buildings makes them unique in that area, and potentially very attractive to tenants who might prefer to occupy (and possibly buy) their own building. The ideal tenants would be companies seeking anywhere from 50,000 to 300,000 square feet. Plus, tenants can take advantage of the site’s location along the heavy haul corridor, allowing shippers to send heavier loads to and from the intermodal yard, which is strategically located in the Midwest with access to 85 percent of the U.S. population in two days or less.

The property’s ideal location also drastically reduces drayage expenses—with savings estimated at $250,000 to $456,000 per year, or $.83 to $1.52 in annual savings per square foot. Other possible opportunities include savings in fuel surcharges, chassis charges, city heavy-haul usage fees and freight handling charges—not to mention the environmental benefits of lower gas emissions and reduced energy consumption.

“Logistics experts all agree: This is the best location for tenants sized 300,000 square feet and below in the Kansas City metro,” said Aaron Schlagel, vice president of development and construction at Copaken Brooks. “Midwest Gateway is one of the clearest examples of how strategic location of a property can make a positive impact on the bottom line from day one. This is the perfect solution for anyone looking for that rare, smaller-format distribution facility.”

The buildings also feature state-of-the-art loading equipment and LED lighting for greater efficiencies. Brooks said the company is ready to begin working with tenants to customize the office interiors to have the space ready for occupancy in spring 2018.

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