Friday, January 13, 2006

DHL Signs 20-Year Lease for $181 Million Manhattan Service Center

Crain's New York - January 11, 2006

Delivery company DHL plans to spend $181 million to build its largest U.S. service center in Manhattan, a step to compete for the area's express shipping market. The $181 million includes construction, the lease and other capital expenditures.

The new 161,125-square-foot center at 500 Tenth Avenue and West 38th Street will handle pickup, delivery and sorting operations 24 hours a day during the workweek and until 6 p.m. on Saturday. DHL signed a 20-year lease to build the facility, which will consolidate two existing service centers and increase handling capacity by 50%, to 15,000 letter and parcel shipments per hour. Construction will start next month and the facility, which will initially operate with 400 employees, will be fully operational in May, the company said. Studley Inc. represented DHL in the deal.

Germany-based DHL competes with Federal Express, United Parcel Service and the U.S. Postal Service. All aim for more market share by offering better services and more options, like online tracking and shipping orders. Sphere: Related Content

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