by Brian J. Rogal, GlobeSt.com
Dermody Properties and Hillwood Investment Properties recently broke ground on an 898,560 square foot facility for Wayfair Inc., an online distributor of home furnishings and décor. The groundbreaking took place at 1600 Donaldson Rd. in suburban Erlanger, KY, next to the Cincinnati/Northern Kentucky International Airport and in one of the tightest major distribution areas in the country.
Wayfair already has a fulfillment center in nearby Hebron, KY, where it currently employs more than 200. The central location of Cincinnati and its suburbs on the other side of the Ohio River has made the locale quite important as online businesses expand throughout the US. However, it has been more difficult to get large distribution projects started on the KY side due to the difficult terrain, one of the reasons vacancy rates have sunk to historic lows.
In the second quarter, for example, CBRE reported vacancy rates of 4.4% in Cincinnati and 2% in northern KY. And the rate among class A bulk warehouses in the KY submarket had fallen to just 0.5%.
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