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RICHWOOD, KY-GSI Commerce Inc. has signed a long-term lease to occupy a new 543,512-sf building in IDI's Park South at Richwood business park in this northern Kentucky town. The facility will be the fifth fulfillment center in Kentucky for GSI, which operates online stores from site creation to order fulfillment for approximately 60 retailers, manufacturers entertainment companies and sports organizations.
Approximately $5 million in incentives from the state of Kentucky helped seal the deal, says Jim Medbery, a senior vice president with Binswanger CBB. The company considered other locations in Kentucky as well as sites in Indiana, Ohio and Tennessee.
Park South's location, about 10 miles from Downtown Cincinnati, also was a key factor. "The main driving force was labor availability," Medbery, who represented GSI in its search and the subsequent transaction, tells GlobeSt.com. The company plans to employ more than 500 permanent employees at the site. In addition, it expects to hire up to 1,000 part-time seasonal workers to help fulfill orders during the holidays.
Doug Armbruster, vice president of leasing in IDI's Cincinnati office, tells Globest.com that Park South is close to major distribution hubs, a critical factor for a company such as GSI that ships products directly to consumers. The park, which provides direct access to Interstates 75 and 71, is about an hour from the UPS Worldport hub in Louisville, and five minutes from a FedEx ground hub.
IDI is nearing completion of the new building, and GSI plans to begin preparing the space for operation in January 2007. Called Building F, the facility features 32-foot clear ceiling heights and Early Suppression Fast Response (ESFR) sprinkler systems.
The GSI lease is the second major transaction at Park South in 2006, Armbruster adds. Earlier this year, Cummins Inc. signed a lease to occupy 100% of a 603,000-sf building in the park.
Park South, with a potential build out of 4.5 million sf, is IDI's follow up to Park West International in Hebron, where it built 5.5 million sf in 10 years. The company plans to start construction this year on its third facility at Park South, a speculative 678,363-sf building fronting Interstates 71 and 75.
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