Tuesday, March 07, 2017

Sources: Amazon to double its Dallas regional operations hub at Galleria Towers

Online retail giant Amazon.com Inc. (Nasdaq: AMZN) has decided to double its North Texas operations hub at the Galleria Towers in Dallas as it expands its regional supply chain.

The Seattle-based online retailer has signed a lease for five floors, or roughly 100,000 square feet, which will basically double Amazon.com's regional office within the Galleria Towers property, multiple real estate sources told the Dallas Business Journal.

The retailer is expected to move onto five contiguous floors within the former FedEx Office space within Three Galleria Tower at 13155 Noel Road in Dallas. Amazon did not respond to interview requests.

In 2014, Amazon.com landed within four floors totaling 88,615 square feet of space at the neighboring Two Galleria Tower.

The expansion of the regional operations center was likely needed to help support the online retailer's growing presence in North Texas, said Susan Arledge, president of site selection for Dallas-based E Smith Realty Partners.

Arledge, who isn't working on the deal, said companies like Amazon.com want to locate near adjacent facilities and a talented workforce.

Amazon.com has millions of square feet of distribution space in North Texas and employs thousands of workers.

In January, Amazon.com announced it planned to open its third 1 million-square-foot fulfillment center in Coppell that will employ 1,000 workers.

Amazon also have two other Coppell facilities and massive distribution operations in Haslet, Dallas, Fort Worth and Schertz.

So, it makes sense a company would need to expand its supporting regional operations, she said.

"I'm guessing this office is accessible to all the distribution centers," said Arledge, who has decades of experience working in Dallas-Fort Worth.

"This area is equidistant to all the cities in the region and gives them easy access to their distribution operations," she said.

From a labor standpoint, it also makes a lot of sense when recruiting office administrators, finance specialists or other key operational employees, she said.

Candace Carlisle/Dallas Business Journal.