Overstock.com Signs Major Industrial Lease in Kansas City

The new warehouse is strategically positioned to allow Overstock to offer two-day ground shipping to more than 99% of customers in the contiguous United States.

5300 Kansas Ave. totals 517,391 square feet of industrial space.

KANSAS CITY, KS—Online retailer Overstock.com has signed an industrial lease deal in excess of 500,000 square feet at BH Properties’ 5300 Kansas Ave. property here.

Oversrtock.com signed a lease for 517,391 square feet after a national search for a distribution facility. BH Properties was represented by John Hassler and Mark Long, SIOR, of Newmark Grubb Zimmer in Kansas City and in-house by Bill Hardy. Overstock.com was represented by Luke Burbank and Kyle Roberts (SIOR) from Newmark Grubb Acres in Salt Lake City and Long of Newmark Grubb Zimmer.

Oversrtock.com previously announced its plans to open a new Kansas City warehouse and noted that it expected to begin operations at the facility this month.

The new warehouse is strategically positioned to allow Salt Lake City-based Overstock to offer two-day ground shipping to more than 99% of customers in the contiguous United States, the company reported. Overstock now has three distribution locations nationwide, including Salt Lake City, Carlisle, PA and Kansas City, KS.

“Overstock.com has always focused on finding ways to continually offer our customers the best possible shopping experience, including their delivery and post-delivery needs,” said Carroll Morale, Overstock’s vice president of supply chain. “Integrating the new Kansas City warehouse to our existing supply chain network will help us provide faster shipping to our customers just in time for holiday shopping, delivering an improved customer experience alongside the products in every order.”

The company intends to expand the facility’s functionality to include returns processing and expects that the Kansas City warehouse will create more than 100 jobs for the local community within the next two years.

“We are thankful for the support we’ve received from the Kansas Department of Commerce as we have expanded our supply chain to include the new facility in Kansas City,” Morale said. “This warehouse is another step towards continuing to strategically expand our two-day shipping lanes throughout the country and decrease delivery times for customer orders.”

Steve Gozini, president and CEO of BH Properties, says the transaction would not have materialized without the help of Chris Gutierrez of KC SmartPort, Greg Kindle from the Wyandotte Economic Development Council and Alicia Hutchings from the State of Kansas.

BH Properties, in addition to its Santa Monica headquarters, also has offices in Salt Lake City and  Phoenix.