By HARRY COGHLAN //
Nassau County has limited space to work with when it comes to the construction of warehousing facilities that allow companies to manufacture, house and distribute products to customers.
As e-commerce continues to boom, the simple fact is that warehousing and distribution space on Long Island is scarce and outdated. We must think creatively to solve this 21st century problem.
With the finite space available often coupled with restrictive zoning laws, it is incumbent upon the region’s developers and municipalities to optimize the use of these existing coveted locations and facilities. Whether that be creating entirely new, state-of-the-art structures or renovating existing facilities to bring them up to today’s standards, the long-term efforts to do so have innumerable benefits.
Constructing warehousing facilities that are essentially “blank canvases,” incorporating the more nuanced building specifications today’s companies require for day-to-day operations, helps Nassau County expand its pool of potential businesses seeking to move or expand within our borders. While costly at the start, the long-term economic benefits of such projects are not to be ignored.
Harry Coghlan: Putting the where in warehousing.
Take, for example, one of the Nassau Industrial Development Agency’s recent projects, located at 400 West John St. in Hicksville, developed by Sanders Equities. The 42,454-square-foot warehouse/office facility was projected to create at least 25 new full-time positions and almost 70 construction-phase jobs. The $7 million investment created a new building in a great location, with column-free 30-foot-clear ceiling height, covered loading docks and ample parking.
The specs of this project positioned the building as a perfect warehouse and distribution/fulfilment center, due to the flexibility of the space and the ability for tenants to install very tall storage racks.
What made this project so unique? At the time of application, the proposed warehouse did not have any tenants lined up. It was the first time this new IDA board had convened on a speculative project, and it was not a decision they took lightly.
But the IDA doubled down on its role and responsibility for fostering economic development in the county. The IDA board ultimately took the calculated risk to invest in the project to seize the opportunity to create a state-of-the-art warehousing facility, despite no assurance of a tenant. In the end, the estimated positive economic impact it would have on the region could not be ignored.
In December 2018, the IDA board approved the project. Fast forward to 2021: The warehouse has been completed and the developers have secured two top-tier tenants to occupy the space, Wal-Mart Stores East LP and Weinstock Bros., a Würth Group company.
Outside the box: The Nassau IDA rolled the dice on the West John Street project, which now boasts two major-league tenants
The two tenants could not be more different – Wal-Mart Stores East is an extension of the discount retail chain and Weinstock Bros. is a renowned supplier of high-quality structural bolts, tools and equipment for building and bridge construction projects – but they converge on a shared need for modern warehousing space that enables them to optimize operations and expand their businesses in our region.
When all was said and done, the West John Street project was a catalyst for the creation of 32 new full-time jobs and 200 construction-phase jobs, numbers that far exceeded initial projections.
With the limited developable land Nassau County has to work with, warehouse and distribution facilities – and industrial real estate in general – will remain at a premium, with demand far outweighing supply.
In today’s e-commerce economy, which has been critical throughout the pandemic, “build it and they will come” is a mantra that all of those in economic development can, and should, get behind. We just need to be creative in how we do it.
Harry Coghlan is the chief executive officer and executive director of the Nassau County Industrial Development Agency.
