A business park development designed to provide space for companies that fulfill e-commerce orders and to serve as office space for logistics providers is underway in Jonesboro.
The project, expected to break ground March 1, is in the preliminary stages as developers secure land and send proposals to potential tenants.
The site of the future E-Commerce Park, developed by Haag Brown Commercial, is estimated to increase transportation efficiency between Jonesboro and Memphis, as well as bring hundreds of jobs to the area.
“We think it’s the most meaningful project that’s occurred in Northeast Arkansas in a long time,” said Josh Brown, a principal with Haag Brown.
According to development plans, the park will provide up to 3 million square feet of logistics, warehouse and manufacturing space, located along Interstate 555, just east of Shooting Complex Road.
It will also include walking trails, water features, a large loading area and a solar farm.
The idea for the project came as e-commerce demand began to surge through the coronavirus pandemic. Brown said some of the largest real estate transactions of late have been by hedge funds seeking warehouse and distribution space for Amazon and other online retailers.
Jonesboro is located within an hour of Memphis, one of the largest logistics hubs, and Mississippi County, one of the country’s largest steel producing counties. Brown said there’s no space available in the region to accommodate growing demand.
Haag Brown purchased about 190 acres for the project with plans to add more. Brown said the team is waiting to secure an additional 370 acres that run adjacent to the property, bringing the total land for the project to 560 acres.
Brown said it’s hard to estimate the cost of the project. Depending on the tenants and their goals, the project is estimated to range between $150 million to $300 million for construction and infrastructure costs.
One of the centers Haag Brown looked at when developing its plans was Olive Branch Logistics Center, a warehouse and distribution center 12 miles from Memphis International Airport.
So far, Haag Brown has sent proposals to two companies with operations in Jonesboro. Brown said he imagines third-party logistics providers using the space for warehouse, distribution or headquarters needs and hopes to recruit others to the area.
Being so close to Memphis, where thousands of commercial trucks travel on a daily basis, he said the additional warehouse space near the interstate would get truckers on and off the highway as quickly as possible.
Haag Brown is expected to announce who the tenants will be in the coming months. Brown said he hopes to have construction complete by the end of 2022.
