Ikea Plans Million-Square-Foot Staten Island Warehouse

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Ikea will open a nearly 1-million-square-foot distribution warehouse on the western shore of Staten Island, according to a press release from the Swedish furniture chain.

SEE ALSO: Dov Hertz Ground Leases Red Hook Industrial Site for $280M

The Netherlands-based corporation has inked a seven-year lease for a 975,000-square-foot building at the Matrix Global Logistics Park along Gulf Avenue in Bloomfield, just south of the New York Container Terminal. Ikea, which is the world’s largest furniture retailer, will fulfill orders for customers who order items online or purchase larger pieces of furniture in stores. There is a retail store in Red Hook, Brooklyn, and one in nearby Secaucus, N.J.

The length of the lease and the asking rent for the space weren’t immediately available. However, owner Matrix Development Group told Commercial Observer last year that asking rents for the complex hover around $10 a square foot. Like most industrial landlords, Matrix requires triple-net leases.

CEVA Logistics, a Dutch shipping and supply chain company, will operate the warehouse and employ 200 workers there.

“As we expand across the country and grow our online presence, we want to ensure we have sufficient warehouse capacity to support the efficient and timely delivery and shipment of products to our customers,” said IKEA U.S. President Lars Petersson in prepared remarks. “Our goal is to increase accessibility to IKEA products, and a new fulfillment center in Staten Island will help us meet the home furnishing needs of our customers in the New York metropolitan area.”

The cheap furniture giant will join Amazon in the 3.2-million-square-foot Bloomfield industrial park. The e-commerce company announced plans in September 2017 for a $100 million, 855,000-square-foot fulfillment center at the 200-acre development near the Goethals Bridge.