With the help of CRESA Partners, systems, defense and aerospace contractor BAE Systems has leased two entire buildings with a total of 295,000 sq. ft. in Reston, Va., over the past 18 months.

Mid-Atlantic States
A Magnet for DCs

Mid-Atlantic states, by their geographic good fortune, are attractive to firms siting regional distribution centers. In fact, these states often compete for projects. During the first few months of 2003, Virginia came out ahead in the competition for several large facilities.
        Wal-Mart Stores will invest $55 million and create 1,000 jobs as it builds a 1.2-million-sq.-ft. (111,480-sq.-m.) facility just off I-81 in Mount Crawford in Rockingham County. The project is the largest single jobs promise in the state since January 2002. Virginia won out over Maryland and Pennsylvania. Construction will begin in the spring of 2004 with opening a year later.
        "The Mount Crawford regional distribution center will provide Wal-Mart the opportunity to better serve the growing number of Wal-Mart customers who shop at our stores in the Mid-Atlantic region," says Rollin Ford, executive vice president of logistics for Wal-Mart. The discount retailer is also nearing completion of a similar-sized facility in Smyrna, Del., which will also employ 1,000 within three years.
        The Home Depot will invest $25 million to build a 750,000-sq.-ft. (69,675-sq.-m.) facility in Frederick County. The facility will distribute merchandise made in countries outside the U.S. to more than 100 Home Depot stores in Mid-Atlantic states. The center will open this fall.
        "The Frederick County site was selected based on its overall cost, proximity to stores and the opportunity to cost-effectively process ocean containers through the Virginia International Terminals and the Virginia Inland Port," says Lee Bandlow, vice president of distribution services for The Home Depot.
        Ford Motor Company, continuing its mammoth consolidation of regional parts distribution centers around the U.S., will invest $13.3 million to build a high-velocity distribution facility in Frederick County's Coca-Cola Industrial Center. Construction on the project is under way and is scheduled for completion in November. Virginia outbid Maryland for the project, which will create 95 jobs.
        "Ford chose Virginia as the location for our new high velocity parts distribution center because at the state and local level there are many positive business attributes that support and encourage business development," says Kent O'Hara, Ford's manager of parts, supply and logistics planning. "Virginia has always made us feel like they really wanted Ford as a key member of their business community."
        Intertape Polymer Group (IPG), in a move to reduce operating costs and improve service levels, will consolidate three existing regional distribution centers into a new facility in Danville, Va. The Montreal-based company manufactures specialized polyolefin plastic- and paper-based packaging products for industrial and retail use. IPG will close existing centers in Danville, Bolingbrook, Ill. and Suwanee, Ga. The new facility will be located adjacent to IPG's factory and will employ 50. The Industrial Development Authority of Pittsylvania County is building the 200,000-sq.-ft. (18,580-sq.-m.) complex, which will be operational during the fourth quarter of this year. The project is an investment of $10.6 million.
        Giant Foods elected to stay in Maryland and build a new 500,000-sq.-ft. (46,450-sq.-m.) fresh food distribution center in Jessup. The facility opens this summer and replaces the company's antiquated 46-year-old facility in Landover. The company looked at sites in Delaware, Virginia and other locations in Maryland before deciding on Jessup.
        "There were several factors that were considered in arriving at this decision," says Dan Durrie, Giant's executive vice president of operations. "Logistics, cost of doing business, employee retention and incentives were among the many issues that were considered."