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Amazon Formally Announces Third California Warehouse

Internet Retailer Establishes Presence At San Francisco Bay Area Transportation Gateway
January 22, 2013
After several years of bypassing California in favor of siting fulfillment and distribution centers in other states, Amazon is now on track to occupy its third 1 million-square-foot facility in the Golden State.

The Internet retailer this week confirmed plans to open a new fulfillment to be built in Tracy, CA, about 60 miles east of San Francisco and a main transportation waypoint for the Bay Area. The retailer signed a lease agreement with Prologis, Inc. (NYSE: PLD) to build the center on nearly 90 acres at Prologis Park Tracy Phase II.

Amazon opened its first fulfillment center in California, along with 700 jobs, in the Inland Empire city of San Bernardino in October. The company is also building a site in Patterson, CA, expected to open next summer.
Upon completion of Amazon's facility, Prologis Park Tracy Phase II will be at full occupancy, with three distribution facilities totaling about 2.2 million square feet, Prologis said in a release.

"We place tremendous value on our global customer relationships, and are pleased to provide Amazon with strategic distribution space in eight markets across the globe," said Scott Lamson, president, northwest region, Prologis Americas. "The growth of e-commerce is driving strong demand for large facilities, not only from our online retail customers, but with traditional brick and mortars as well."

The latest announcement, which confirms information first revealed by Tracy officials in November, represents good jobs coming to the region as well as California's strong -- and relatively recent -- partnership with Amazon, said Kish Rajan, director of Gov. Jerry Brown’s Office of Business and Economic Development.

An agreement by Amazon in 2011 to collect state and local sales tax on purchases in California paved the way for the three developments. Previously, Amazon had sited fulfillment centers only in states that didn’t require the company to collect or agreed not to collect taxes.

"This third new distribution center marks a commitment by Amazon of over 1,000 California jobs in the last year alone," Rajan said.
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