Amazon plans another big distribution center in Chicago area
PHOTO BY BLOOMBERG
For the third time in about three months, Amazon has announced plans to add a huge distribution center in the Chicago suburbs, this time in Monee.
Amazon said it plans a fulfillment center of more than 850,000 square feet in the south suburb, where hundreds of employees will sort, pack and ship small orders such as books and electronics.
The company's statement did not specify exactly how many workers will be in the Monee facility, other than to say it will be "hundreds and hundreds."
It is the latest in a series of deals by Amazon as it builds a network of distribution centers in the Chicago area to meet the growing demand for online shopping.
Amazon in late May said it planned a second large distribution facility in Joliet. The Seattle-based company, which opened its first Joliet building last October, said it will have 3,500 workers in Joliet once both warehouses are operating.
In June, Amazon said it planned to hire hundreds of workers at a new Romeoville warehouse.
“We place our fulfillment centers close to customers to provide the fastest possible delivery times, and the growth in Illinois is directly tied to our increasing customer demand,” Akash Chauhan, vice president of Amazon's North America operations, said in yesterday's announcement of the Monee warehouse.
The warehouse will be built for Amazon at 6521 W. Monee Manhattan Road just west of Interstate 57, Amazon spokeswoman DeAnn Baxter said in an email. She declined to provide an estimated completion date, but said “we expect it to move quickly.”
According to real estate date provider CoStar Group, Amazon will be a tenant in an 856,605-square-foot building that Atlanta-based Seefried Properties and San Antonio-based USAA Real Estate plan to develop on the site. Amazon plans to move into the building in October 2017 on a 15-year lease, according to CoStar.
David Riefe, Seefried's senior vice president of the Midwest Region, did not immediately respond to a request for comment.
"It's clear that Illinois is a growing center for businesses like Amazon that need a strong transportation hub and logistics," Intersect Illinois CEO Jim Schultz said in a statement. "We are excited to earn another investment by Amazon and will continue to work closely with them to expand their presence here."
Intersect Illinois works with the Illinois Department of Commerce and Economic Opportunity on economic development in the state.
It is unclear whether the state is providing financial incentives as part of the Monee deal. Intersect Illinois spokeswoman Kelly Nicholl did not immediately respond to requests for comment beyond its statement.
In addition to large distribution centers outside the city, Amazon also has leased smaller spaces on Goose Island and the South Side to make fast deliveries to homes in the city. Expectations that Amazon and competitors will continue gobbling up urban warehouse space are fueling asurge in industrial development within Chicago's city limits.
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