Trammell Crow, a Dallas-based company building a new Amazon warehouse northeast of Loveland, plans to hand over the facility to Amazon.com in August.
The project, now described as a four-story, 3.5-million-square-foot facility, began last March.
Seattle-based Amazon has cut work on several new constructions across the country, but this was not the case, said Sam Sam, manager of economic development policy for the company in seven states in the western United States. Bailey and Becca Dickenson, development managers for Loveland’s Trammell Crow project, spoke with a group of real estate professionals gathered at the ReMax Alliance commercial office at 6028 Stallion Drive in Loveland on Tuesday evening. Did.
“Real estate doubled in two years when COVID-19 hit,” says Bailey.
The pandemic, lockdowns, and work-from-home practices during that period led to a significant increase in online purchases, which Amazon benefited from. However, the end of the pandemic has forced the company to rethink its expansion strategy.
“Some projects have been canceled, but not this one,” he said.
That’s because Northern Colorado is in the company’s growth path.
“We are obsessed with our customers,” he said. “We are growing in the North and East. This facility serves not only northern Colorado, but Wyoming, Montana, and other places that don’t support having a facility like this. increase.”
The building was costly. Construction is expected to cost about $400 million, Dickenson said. Dickenson said $250 million was spent building a similar-sized facility in Colorado Springs, which opened in September 2021.
Rising costs are due to inflationary pressure from supply chain disruptions and other sources. Bailey admitted that he found Amazon competing with himself by having two major construction projects competing for steel and other materials.
Loveland’s facility, called DEN9 in Amazon’s parlance, isn’t the last place people order products online. Instead, it fits somewhere in the middle. Another of Loveland’s facilities, called DDE8, is in an industrial building McWhinney Real Estate Services Inc. built just south of his Centerra’s North Colorado Regional Airport, where Amazon’s blue trucks are in the neighborhood for deliveries. It’s the last stop before we set foot. Bailey said all materials stored and fulfilled from his new DEN9 will arrive and depart by semi-truck.
Dickenson said DEN9 has 66 loading docks.
Loveland facilities accept packages weighing 50 pounds or less. Larger items such as televisions are shipped from the Aurora warehouse called DEN2. The warehouse he supplies to all 50 states. Located on Interstate 70 and he E470.
Amazon uses its own system to organize inventory and facilitate shipping. Customers often receive their products the next day. According to Bailey, depending on the items ordered and the customer’s location, orders can be fulfilled in as little as 25 minutes.
The upper floor, called the AR or Amazon Robotics floor, is where robots search inventory and store products and their quantities based on geography and demographics. For example, Bailey says snow shovels aren’t stored in Miami.
Citing Harry Potter books and products as another example, he said those products would be distributed within each warehouse facility and would not be stored in the same shelving unit. This is because if a company is inundated with orders for a single product, fulfillment will take longer if the robot search system has to go to one place instead of going to multiple places at the same time.
Bailey said DEN9 will employ 1,200 to 1,500 people when it opens. He did not predict what the peak of employment at Loveland would be. Dickenson said about 350 workers were on site at the peak of construction.
Bailey told Realtors that he doesn’t expect many homes to sell because jobs will skyrocket in the coming months. That’s because workers likely already live in the area.
Workers will come primarily from Larimer, Weld, Adams, and possibly Wyoming counties, he said. His starting salary is $19 or $20 an hour. Employees are entitled to health insurance and continuing education from their first day of work. “We cover the cost of an associate’s or bachelor’s degree. We are a workforce development asset,” Bailey said.
He said employment was less of an issue than long-term retention. “Once people have a degree, they move on.
This facility will increase traffic in the surrounding area. According to Dickenson, a traffic study predicts he will see a 20% increase in quasi-traffic at several points during the day. Bailey said in part that trucks coming from Denver’s warehouse on the interstate would be replaced by trucks moving locally.
Air freight movements will continue to use Denver International Airport instead of the Northern Colorado Regional Airport. NoCo airport is “not in the long-term plan for cargo,” Bailey said, noting that the DIA serves the entire state.
Last-mile drone deliveries are also not in the immediate plans. “It’s efficient to load 500 or 700 boxes into a van and deliver them,” he says Bailey. “We’re moving conservatively,” he said of drone use. “No drones will fly out of this site.”
This article was first published by BizWest, an independent news organization, and is published under license. © 2022 BizWest Media LLC.Original available here: Amazon to hand over Loveland facility in his August