Grassroot Projects Dominate U.S. Distribution and Warehousing Activity

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Written by Danny Levin, Deputy Editor for IIR News Intelligence (Sugar Land, Texas)

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Summary

As e-commerce sales in the U.S. continue to rise, industry giant Amazon, other retailers and logistics companies are building out warehousing and distribution space across the U.S. Industrial Info is tracking $11 billion worth of warehousing and distribution projects under construction in the U.S, with nearly 70% of the activity attributed to grassroot projects.

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U.S. E-Commerce Sales

Data from the U.S. Census Bureau show an estimate of U.S. retail e-commerce sales for fourth-quarter 2025, adjusted for seasonal variation but not for price changes, was $316 billion--up 5.3% year-over-year and 1.7% from third-quarter 2025.

In addition, e-commerce sales accounted for 16.6% of total retail sales in the fourth quarter of this year, roughly flat compared with the third quarter's figure.

Total e-commerce sales, according to the bureau, were estimated at $1,233.7 billion , up 5.4% from 2024.

Adjusted data, which includes price changes, for the fourth quarter show $365.2 billion in sales--up 5.6% year-over-year.

Although the National Retail Federation projects U.S. retail sales will grow 4.4% in 2026 due to strong consumer demand, rising uncertainty due to the escalating Middle East conflict and U.S. inflationary data could impact consumer spending in the short-term.

Further disruption in the Strait of Hormuz could lead to longer shipping times for some product categories. Meanwhile, the Bureau of Labor Statistics reported a February jump in wholesale inflation--measured before the Middle East conflict began. The Producer Price Index rose 0.7% month-over-month, more than double expectations, and above the 0.5% rate in January. Higher producer costs are expected to lead to elevated consumer retail prices in the months ahead.

Still, Amazon and other retailers are hard at work building out their distribution and warehousing space.

Amazon's E-Commerce Operation Leads U.S. Distribution and Warehousing

Industrial Info is tracking $2.5 billion in warehousing and distribution projects under construction across the U.S. from Amazon, which accounts for roughly 22% of the total investment; 12 of the company's 15 projects, and nearly all of the investment, is attributed to grassroot projects.

This includes three facilities that could be operational next year. With a combined investment value of $670 million, distribution centers in Rockville, Virginia, Little Rock, Arkansas, and Terrell, Texas, will support regional operations.

Subscribers to Industrial Info's Global Market Intelligence (GMI) Industrial Manufacturing Project Database can read the three project reports.

Other E-Commerce-Related Projects

Other retailers also are building out warehousing and distribution capacity, with two such projects set to wrap up around the end of the year: construction of Ross Stores' $450 million grassroot facility in Randleman, North Carolina, and Tractor Supply Company's grassroot facility in Nampa, Idaho. Subscribers can read the project reports.

Also underway is a project from transport and logistics company DSV, through its DSV Air & Sea division: a logistics warehouse and regional corporate headquarters in Mesa, Arizona, just east of Phoenix, will be across the street from the Phoenix-Mesa Gateway Airport. Subscribers can learn more from a detailed project report.

U.S. Food and Beverage Warehousing

But the highest-valued distribution and warehousing project under construction in IIR's database is the $840 million construction of the Burlington grassroot automated distribution center in North Carolina, designed for fresh and frozen food items.

Earlier this year, grocery retail group Ahold Delhaize reached a strategic investment deal with funds managed by Blackstone's Credit & Insurance unit, which agreed to invest $475 million to support construction and take full ownership of the facility. Under the agreement, Ahold Delahize would lease and operate it long-term. Operations are expected to begin in 2029.

Subscribers can read the project report.

Another high-dollar project ($338 million) is attributed to Coca-Cola Bottling Company United, the second-largest privately held Coca-Cola bottler in the U.S. and the nation's third-largest Coca-Cola bottler overall. Construction of a new headquarters and warehousing complex in Birmingham, Alabama, is expected to wrap up in late 2027. Subscribers can learn more by viewing the project report.

Key Takeaways

• Buoyed by e-commerce, Amazon leads U.S. distribution and warehousing projects under construction.
• Retail sales are expected to grow in 2026, although inflation and disruptions from the Middle East conflict could raise producer costs and boost consumer prices.
• In addition to a wide variety of retailers, global transport and logistics companies also are building out capacity.
• IIR data show $11 billion worth of distribution and warehousing projects under construction in the U.S.

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About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).