(For more retail coverage, click GlobeSt.com/RETAIL and to read more on the industrial market, click here.)
FREDERICKSON, WA-Ikea will develop a one-million-sf distribution center here to service its stores in the Northwest and throughout the US. The Sweden-based home furnishings retailer is acquiring 65 acres within the Frederickson Industrial Area located 13 miles south of the Port of Tacoma, through which Ikea will receive its product.
Ikea currently has only one store open in the Northwest US, in Renton, but a second store is under construction by Portland International Airport in Portland, OR, and a third store is rumored to be in the works between Tacoma and Olympia. The new Frederickson distribution center also will provide the primary inventory for four Ikea stores in Western Canada and another that is under construction in Draper, UT.
Ikea has agreed to pay the Port of Tacoma approximately $8.6 million for the Frederickson land, a source at the Port tells GlobeSt.com. The price was based on independent appraisals. The deal is expected to close before the end of the year.
The first phase of the distribution facility, scheduled to open in early 2008, will be 834,000 sf. The facility will be designed to accommodate an eventual 220,000-sf expansion.
The Port acquired the 500-acre Frederickson Industrial Area in the 1960s and 1970s and installed industrial-grade infrastructure. Boeing has a large presence in the FIA as do supporting manufacturing companies such as Toray Composites America, which supplies carbon fiber composite materials to the Boeing wing and spar plant.
All but 100 acres of the Frederickson Industrial Area has been sold off. The largest contiguous availability is 40 acres. Access to the area will improve significantly in the coming years when the new cross-base highway is completed, creating a direct route from the Frederickson area to Interstate 5.
In August, in search of the next Frederickson, the Port of Tacoma acquired a 750-acre chunk of land in Thurston County for approximately $20 million. Since the property is out of its jurisdiction, the Port of Tacoma will oversee the development of the property in partnership with the Port of Olympia.
Ikea currently has 28 stores up and running the US, 11 in Canada and nearly 200 others around the world. Its Frederickson distribution facility will be one of eight in North America when it is complete.
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