By Jon Peterson
The Swedish furniture design and retail conglomerate IKEA has agreed to lease 650,000 square feet of warehouse space in the Napa Logistics Park in American Canyon. The company will be using this location as its first customer service fulfillment center in the greater San Francisco Bay Area.
“This distribution hub will deliver customer orders in Central and Northern California as well as the Pacific Northwest. The new site will also serve as a customer fulfillment center for our hands-free shopping services for the San Francisco market. Hands-free shopping affords customers in an IKEA store the option to book a home delivery right from the showroom floor while they are making their purchasing decision. This eliminates the need to stand in an additional line to book delivery services after check out,” says Latisha Bracy, US expansion public affairs manager.
This lease will cover the entire first phase of the development of the 218-acre Napa Logistics Center Park. The development of this project is Lafayette-based Orchard Partners along with its financial partner San Francisco-based DivcoWest Properties. Both of these companies declined to comment when contacted for this story. At full buildout, the development has the potential for a total of 2.9 million square feet.
There is currently around 100 acres planned for the rest of the development beyond the first phase of the project. “At this time all we are committed to is the current lease at American Canyon. We are excited and solely focused on completing this project so we can continue advancing our e-commerce and shopping access to our Bay Area customers,” said Bracy.
IKEA was looking for a site for a customer fulfillment center that would be an existing Class A industrial space that was in an hour’s drive of the San Francisco market. The site that it chose was approximately one hour from its Emeryville store and 35 miles northeast of San Francisco.
IKEA was represented in the lease in Napa Logistics Park by Tony Beatty, a senior vice president with JLL in its Walnut Creek office. He declined to comment.
IKEA is now planning for a fourth retail store in the San Francisco Bay Area. The site is located at the northwest corner of I-580 and Hacienda Drive in Dublin. The store will total 339,000 square feet, and the company is hopeful the store would be opened by 2020. IKEA has current stores in the Bay Area in Emeryville, East Palo Alto and Sacramento.