Amazon Leases Space At Former JCP Warehouse In Manchester, CT.

JCPenney’s

JCP
massive warehouse in Manchester, CT. Is being split up to accommodate major retailers who need space. According to the Hartford Journal Inquirer, the 1.9 million square feet distribution center will be occupied by Amazon, Stop & Shop, and JCPenney.

According to the report, Amazon will run four shifts, seven days a week in their space. They will occupy 350,000 square feet. In addition, Stop & Shop parent Ahold Delhaize has signed a lease for 975,000 square feet. JCPenney will continue to occupy 350,000 square feet. That means about 225,000 square feet is still available for others. The property is owned by Winstanley Enterprises.

Amazon has another major warehouse in Windsor, CT. It is also building a fulfillment center in Windsor. Their commitment to the Northeast is growing.

JCPenney took me (and other financial analysts) about 25 years ago to this huge warehouse. I always questioned the size since the company never had a major presence in the Northeast. At the time, I thought it was an indication of a major expansion planned here. The location was excellent since it abuts US 84, is near Hartford, and could easily move merchandise to customers.

The report goes on to say that the building will be humming by July, since Ahold Delhaize, JCPenney, and Amazon plan to open at that time. The building is now being renovated. The Delhaize deal is expected to bring 500 to 700 new jobs to the area. While there is no final number for Amazon, it is estimated that several hundred people will work in their facility. So, it is easy to estimate that 1,000 or more people will work in the warehouse.

It is said that Amazon likes to build its own facility rather than lease existing ones. However, Gary Anderson, Director of Planning and Development of Winstanley Enterprises, feels this may be a sign that Amazon is planning similar leases in the area in the future.

We learn that warehouses (like this one which was once part of JCPenney) can have a second life after the original management vacates a facility. In this case, the excellent location at 1339 Tolland Turnpike is ideal for retailers who trade in the area and want to give their customers better service. Quick delivery is mandatory today, and good locations help achieve the results.

Warehouses are the lifeblood for any retailer, especially Amazon. The company managed to deliver protection for my cellular phone in less than 20 hours. That is really an achievement.