Haag-Brown Commercial Real Estate and Development is in the preliminary stages of developing an e-commerce park that will feature storage and distribution centers that could impact commerce throughout the region. The park will be located on an 188 acre swath near the recently built Jonesboro Sports Complex, that abuts I-555, Haag-Brown Commercial Principal Josh Brown told Talk Business & Politics.
How much it will cost to build the park, with 3 million square feet of space can be difficult to estimate based on a number of factors, Brown said. It could be a $200 million project once it’s completed, but that could change due to the needs of potential leases, he added. The project could create 500 to 2,500 jobs once it’s finished.
“We hope to break ground by March 1 next year,” he said.
Developers want to model this park after the Olive Branch Logistics Center located in Olive Branch, Miss.
“It’ll be similar to a retail space project in that the buildings will be built after potential clients sign a lease,” Brown said. “This will ensure that the space is built specific to those tenants’ needs.”
Many of the buildings are expected to be multi-floored and could be used for offices and corporate headquarters in addition to warehouse and distribution spaces. First stage utility work will be performed at the site, but structure construction won’t begin until the leases are signed.
“Because of our relationships across the state, we are constantly asked for a product in Jonesboro that just doesn’t exist. We have identified 1 to 2 million square feet of immediate local demand for last mile delivery space and we anticipate another 1 to 2 million square feet needed that has not even been realized yet,” Brown said.
Haag-Brown is in talks with several companies that want to potentially locate in the park, but none were disclosed. The surge in e-commerce in recent years has created a market need for this type of space in Jonesboro. At this point, the company has identified a need of at least 3 million square feet, but during the next decade the need could grow to as much as 10 million, Brown added.
The location of the park has significant advantages that will positively impact the city, Brown said. It’s located on the eastern edge of the city along the interstate meaning it will be easier for trucks coming from Memphis to get in, deliver their goods and then get out, he said. E-commerce distribution traffic will undoubtedly grow in the coming years, and this will keep a significant number of trucks off streets in the rest of the city, he said.
Developers are planning for this to be a five-year project, but Brown said if the right tenants can be lured to the region’s hub city, the timeline could shrink substantially, he said.
“This is a project that has been many months in the making, with design input from some of the very best in the country. We are looking forward to making some exciting announcements in the very near future,” HB Industrial Developer Greg Haag said.