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FSW SubTropolis 475,200 SF facility

SubTropolis Logistics Cluster helps 3PLs grow and expand

SubTropolis “Logistics Cluster” helps 3PLs grow and expand
When it comes to e-commerce, SubTropolis knows how to deliver
Ryan Tompkins – Manager of Sales & Leasing

Global e-commerce sales are expected to exceed $2 trillion in 2017, and the rapid transformation of retailers into e-tailers is creating fresh demand for logistic parks that provide a range of value added services.

As these e-tailers rely on 3PLs to provide more strategic oversight and function as an extension of their enterprise, site selectors increasingly are seeking out business parks with a high concentration of companies with logistics-intensive operations. These so-called “logistics clusters” include logistics service providers (3PLs), IT service providers, distributors, light manufacturing and kitting companies, as well as the distribution operations of retailers.

Besides offering access to a reliable supply base and a well-vetted and proven labor pool, logistics clusters create opportunities for shared knowledge and industry collaboration, according to a recent white paper published by MIT.

In Kansas City, Hunt Midwest is building a thriving logistics cluster at SubTropolis — a 6 million square foot underground business center that is home to more than 50 companies and 2,000 employees.  The result is a sustainable, climate controlled, plug-and-play solution for companies seeking a secured location for logistics-intensive operations.

Interest and activity from logistics-related companies, particularly 3PLs tied to eCommerce and the automotive industry, remains strong. Several 3PLs — including Menlo XPO , UPS Supply Chain, Ground Freight Expeditors, and Advanced Logistics and Fulfillment  — already have chosen SubTropolis and announced plans to expand operations.

A recent article in Logistics Management reports that demand is rising sharply for “e-commerce-ready” industrial real estate property, with growing pressure on retailers to ensure on-time delivery by locating inventory close to population clusters.  Hunt Midwest saw the e-commerce tide rising more than a decade ago and began investing millions into technology infrastructure. Today, leading IT provider LightEdge Solutions serves as the anchor tenant for SubTropolis Technology Center, the Midwest’s premier data center campus.

Just minutes from downtown Kansas City and situated within fast-growing suburbs in both Kansas and Missouri, SubTropolis offers direct access to the thriving Midwestern market of more than 2 million people. Immediate access to three major interstates and close proximity to nearby UPS and FedEx hubs allows companies to achieve 2-day shipping to 90 percent of the US, while offering “last mile” service seen as critical to top performing e-commerce locations.

With blockbuster growth projected for industries served by logistics-related companies and demand rapidly rising for centrally located, “locked and loaded” e-commerce space, Hunt Midwest believes its emerging “logistics cluster” at SubTropolis creates an incredible opportunity in this ever-changing, “just-in-time” world.

 

Ryan Tompkins is manager of sales and leasing for Hunt Midwest. Reach Ryan at rtompkins@huntmidwest.com.

NBC TODAY's Harry Smith tours SubTropolis - Mike Bell

TODAY – Go inside SubTropolis

Go inside ‘SubTropolis,’ the underground city housing Hollywood treasures, ‘cool’ companies
NBC Sunday TODAY Show – October 16, 2016

Under a hill in Kansas City lies a massive man-made facility where businesses have taken up shop. Reporting for Sunday TODAY, NBC’s Harry Smith explores the 6 million square foot industrial park holding Hollywood treasures, cloud computing services and even food distributors. Go inside SubTropolis…