Suffolk stacking up new warehouse proposals

by Heather B. Hayes
for Virginia Business
February 2006

The state’s busy port is turning Suffolk into warehouse central. Thanks to the rapid growth of Asian imports through the Port of Virginia and the planned opening of the new Maersk Terminal in Portsmouth, city officials are having a hard time keeping up with all the proposals to construct warehouses.

The city now has four industrial development projects under way that will provide nearly 2.5 million square feet of port-related storage, distribution, light assembly and manufacturing space for businesses.

The largest project is the Virginia Regional Commerce Park, a business park on U.S. 460 that includes four warehouse buildings, office space and retail sites totaling 1.4 million square feet. The proposal from Regional Property Development Corp., based in Charlotte, N.C., has received a recommendation for approval from the planning commission.

The other projects include: a new business park just south of downtown Suffolk with two buildings totaling 750,000 square feet; two light industrial buildings at Bridgeway Commerce Park totaling 300,000 square feet; and two new buildings at Northgate Commerce Park totaling 200,000 square feet.

Thomas O’Grady, the director of economic development for Suffolk, says that the buildings will help diversify the city’s tax base and bring in a significant number of new tax revenues. All of the proposals are being developed as multitenant leasing opportunities and, he explains, could result in a number of new jobs.

Suffolk, already home to huge warehouses for QVC, Target and Sara Lee, is fielding “numerous” inquiries about the new buildings, even though two projects have yet to receive City Council approval and two are just starting construction. “This will only help expand the opportunities we have for new businesses to come to Suffolk,” O’Grady says.