Industrial

Hunt Midwest's SubTropolis expands to meet today’s need for speed

Hunt Midwest has announced plans to build out an additional 700,000 SF of Class-A space in SubTropolis, the world’s largest underground business complex.

This expansion, built on speculation, provides an excellent solution for warehousing and distribution operations struggling to meet the current supply chain and speed-to-market demands created by today’s online shoppers.

With more than 7,000,000 SF of industrial space, SubTropolis offers benefits beyond traditional above-ground industrial buildings. Lower operations and leasing costs top the list, along with a naturally temperature-controlled climate, ideal for storing inventory with a limited lifespan or specific temperature needs.

“The naturally climate-controlled environment in SubTropolis provides a low-cost solution for distribution space in the heart of the logistics corridor,” said Mike Bell, senior vice president with Hunt Midwest.

SubTropolis delivers warm-shell warehousing with demisable space from 50,000 – 300,000 SF and occupancy in 90 – 120 days. The short build-out period ensures that businesses experiencing rapid growth can scale operations to continue to meet consumer demand in a timely manner.

“Building a business complex into limestone cliffs isn’t something that’s done every day. But Hunt Midwest has been able to successfully leverage one of Kansas City’s natural resources to create a unique environment that benefits many business models,” Bell said.

A substantial portion of SubTropolis’ footprint is currently occupied by e-commerce, archival and document storage, pharmaceutical and animal health facilities and food distributors.

The complex’s location also adds value, as Kansas City is the most centrally-located of major U.S. markets. KC is at the heart of a railway corridor reaching from coast to coast and Canada to Mexico and the Kansas City International Airport moves more air cargo each year than any airport within a six-state region.

Tenants residing in SubTropolis reach 90 percent of the country with their products within two days via ground or air, resulting in reduced delivery costs.

Combined with other features such as an on-site, low-latency fiber network and 24/7/365 armed security, the expanding footprint of SubTropolis is poised to support the future growth and business needs of industries focused on keeping up with today’s fast-paced economy.

About Hunt Midwest: Hunt Midwest is a dynamic real estate development company privately held by the Lamar Hunt family. Based in Kansas City with over 50 years of development, construction and management experience, Hunt Midwest’s wide range of projects include industrial, commercial, mission critical, self-storage, residential, multifamily, senior living, mixed use and SubTropolis, the world’s largest underground business complex. Hunt Midwest is part of the Lamar Hunt family’s diverse portfolio of entities involved in real estate, sports/media, energy/resources and private equity investments. In addition to Hunt Midwest, marquee entities include the Kansas City Chiefs, Hunt Southwest, FC Dallas Soccer Club, Toyota Stadium, Chicago Bulls and United Center.

About SubTropolis: As the world’s largest underground business complex, SubTropolis sets the standard for subsurface business developments. SubTropolis was created through the mining of a 270-million-year-old limestone deposit creating a 1,200-acre real estate development. In the mining process, limestone is removed by the room and pillar method, leaving 25-foot square pillars that are on 65-foot centers and 40 feet apart. SubTropolis is home to more than 55 local, regional, national and international companies that employ in excess of 2,000 people.

Contegra Construction adds two distribution centers in KCK

Contegra Construction adds two distribution centers in KCK

Turner Logistics III photo courtesy of Contegra.

2020 industrial hot streak continues into 2021

2020 industrial hot streak continues into 2021

Congress Logistics Center set to offer 634,344 -SF of industrial space to Kansas City market, rendering courtesy of VanTrust Real Estate.

PepsiCo joins Logistics Park Kansas City

PepsiCo Global will soon be moving into the state-of-the-art Inland Port VII building at Logistics Park Kansas City (LPKC), a 3,000-acre, master-planned distribution and warehouse development in Edgerton, Kan.

“PepsiCo chose Edgerton and LPKC because they can see the clear advantages of locating at the premiere logistics and distribution center in the Midwest,” said Edgerton Mayor Donald Roberts.

PepsiCo signed a lease for the 952,956-SF space, where the global food and beverage company plans to distribute their popular Gatorade product line.

“PepsiCo/Gatorade is an excellent addition to the Edgerton business community. LPKC is a convenient, versatile hub that can meet the needs of any company’s supply chain. Edgerton’s proximity to key services and partners is one of the main reasons businesses experience success at LPKC,” said ElevateEdgerton! president, James Oltman.

Built by Northpoint Development, the facility was the largest speculative building in the Kansas City metro and in the state of Kansas when it was completed earlier this year. JLL managing director, Kevin Wilkerson, and executive vice president, Phil Algrim, represented NorthPoint in the negotiation.

“Inland Port VII is the latest delivery in a long line of industry leading logistics products, bringing together accessibility to quality labor and cutting-edge technology in one centralized location,” Wilkerson said.

Since 2013, LPKC has amassed over 14.4 million SF of industrial space for over twenty tenants; work has already started on the next spec industrial building at LPKC.

About PepsiCo: PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated more than $67 billion in net revenue in 2019, driven by a complementary food and beverage portfolio that includes Frito-Lay, Gatorade, Pepsi-Cola, Quaker and Tropicana. PepsiCo's product portfolio includes a wide range of enjoyable foods and beverages, including 23 brands that generate more than $1 billion each in estimated annual retail sales.

Kenco selects Liberty Logistics Park for new facility

Kenco Logistics Services, LLC has selected a 295,600-SF warehouse and distribution space for their new facility at Liberty Logistics Park in Liberty, Mo.

“We are excited that Kenco Logistics, one of the top ten logistics companies in the world, selected the Liberty Logistics Park and our community for their new facility,” said Lyndell Brenton, mayor of the City of Liberty.

“Their decision to locate here reinforces Liberty’s place as a growing logistics and distribution hub in the Midwest. While Liberty Logistics Park is still under construction, we believe our community values, location and "can do” attitude are the differentiators that attract new businesses, like Kenco Logistics, to Liberty, Brenton said.

In the past five years, the KC region has successfully attracted eCommerce and distribution companies pledging to create more than 10,200 jobs, invest $1.8 billion and occupy 16.7 million square feet, according to a release.

“The KC region’s central location and access to a skilled workforce are key drivers of a successful eCommerce strategy,” said Tim Cowden, president and CEO of the Kansas City Area Development Council.

“The KC SmartPort team and our partners in Liberty continue to elevate our region’s competitive advantages to position KC as a leading logistics hub,” Cowden said.

The Kansas City Area Development Council worked with a number of regional partners in attracting Kenco to the Kansas City region, including the State of Missouri, Missouri Partnership, City of Liberty, Missouri, Liberty Economic Development Corporation, CBRE - Joe Orscheln, Evergy, Spire Energy and KC SmartPort.

“It is fantastic to see and support the growth in the logistics and distribution industry in Liberty and the entire KC region,” said Subash Alias, CEO of Missouri Partnership.

“The status of Missouri as North America’s Logistics Center is already well known, and more and more companies, such as Kenco, are taking advantage of one of the best river, road, air and rail infrastructure systems in the nation. When it comes to logistics and distribution, Missouri is a global leader.”

Kenco Logistics Services, LLC

Kenco is the largest woman-owned third-party logistics (3PL) company in the United States. The company provides integrated logistics solutions including distribution and eCommerce fulfillment, comprehensive transportation management services, material handling equipment services, engineering and innovation consulting, and information technology. For more information, visit kencogroup.com.