Outerspace to Open New Warehouse in Phoenix, Creating 500 Jobs
Outerspace, a rapidly growing third-party logistics provider founded in 2019, is expanding its operations with a new 389,000-square-foot warehouse in Phoenix, set to open in March. This expansion will create 500 jobs and enhance the company's ability to provide faster, more cost-effective, and eco-friendly shipping solutions for its e-commerce clients. Outerspace, known for its comprehensive logistics services and commitment to leveraging advanced technology, aims to empower brands by managing the complexities of logistics, allowing them to focus on growth and customer engagement.
William Carlin
30 Jul 2024 2:34 PM
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Introduction of the New Facility
Outerspace, a third-party logistics provider, is set to expand its presence in the western United States with the opening of a new 389,000-square-foot warehouse in Phoenix. The facility, scheduled to open in March, will create 500 jobs in the area. This expansion will enable Outerspace to offer faster and more affordable shipping options for its e-commerce clients by distributing inventory across its four locations in Arizona, New Jersey, and Pennsylvania.
Environmental and Operational Benefits
The addition of a Phoenix warehouse will enhance Outerspace's operational efficiency and sustainability. The company's bicoastal presence will reduce the need for airfreighting orders from the East Coast, providing a more eco-friendly and cost-effective solution for shipping products to the West Coast.
Company Overview and Mission
Founded in 2019, Outerspace has quickly established itself as a comprehensive solution for e-commerce fulfillment and logistics. The company offers a range of services, including inventory management, order fulfillment, and shipping. Outerspace is committed to providing a seamless end-to-end experience for its clients, leveraging advanced technology and automation to optimize operations.
Outerspace's mission is to empower brands by handling the complexities of logistics, allowing them to focus on growth and customer engagement. The company prides itself on its ability to scale with its clients, providing flexible solutions that can adapt to changing market demands. CEO and co-founder Ricky Choi emphasized the importance of growth in the company's strategic vision, noting the significance of this new facility in expanding their capabilities.
Strategic Location and Industry Context
Arizona's strategic location and connectivity to neighboring states and metropolitan areas make it an ideal choice for Outerspace's fourth facility. Chief Commercial Officer Kate Terry highlighted the advantages this location offers to the company's brand clients, providing easy access to major markets across the western United States.
Outerspace joins other businesses establishing a presence in Arizona. Notably, meal kit company HelloFresh opened a distribution facility in Phoenix in 2021, and pop culture products seller Funko relocated its main U.S. distribution center to Arizona in 2022. The state has become a logistics hub, with Union Pacific opening a new intermodal terminal in Phoenix and 3PL Saddle Creek Logistics signing an industrial real estate lease in the area.
Market Dynamics
Despite a surge in new distribution space, the Phoenix market has shown resilience. The vacancy rate in Q4 reached 7.4%, its highest since 2019, but it remains lower than the pre-pandemic 10-year average of 10.4%. This indicates a healthy demand for warehouse space in the region.
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