UPS to Open $200 Million Texas Shipping Hub

Mark Elias/Bloomberg News

UPS Inc. has confirmed that it will open a new $200 million shipping center in Arlington, Texas.

The city of Arlington last week approved economic incentives for the more than 1 million-square-foot distribution center near Interstate 20.

UPS ranks No. 1 on the Transport Topics Top 100 list of the largest U.S. and Canadian for-hire carriers.

On April 4, UPS said that the 110-acre project will eventually have 1,400 full-time workers.

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"The new Arlington building is part of the strategic investments UPS is making to dramatically improve the efficiency and connectedness of our hubs, package centers and transportation network," Craig Wiltz, UPS district president, said in a written statement.

"This project is part of our ongoing efforts to keep pace with rapidly evolving demands of e-commerce customers in Texas, across the U.S. and around the globe," Wiltz said. "UPS is taking its efficient global operation to the next level."

The new Arlington shipping hub will open next year. Developer Exeter Property Group is building the huge warehouse at 2320 E. Bardin Road, south of I-20.

The new UPS warehouse is part of the developer's Arlington Commerce Center and the fifth phase of the business park.

UPS already has major North Texas distribution operations in Mesquite, in the AllianceTexas development in North Fort Worth and at DFW International Airport. The international shipping firm says it has eight package handling facilities in Dallas-Fort Worth, an air gateway, ground freight and supply chain logistics centers.

"Combined with the other UPS facility projects in the Austin, Dallas-Fort Worth, Houston and San Antonio areas, the additional capacity addresses the rapid expansion of both residential and commercial demand, as well as sustains a strong employee base in the area," Wiltz said.

With the boom in e-commerce, North Texas has one of the fastest growing shipping and warehousing markets in the nation.

In the first quarter of 2017, net leasing of warehouse and distribution space in the Dallas-Fort Worth area was about 60% higher than in the same period last year. Industrial building tenants who were expanding and relocating rented almost 6.5 million square feet of space, according to commercial property firm JLL.

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