Cardinal Health, a major healthcare company with roots in central Ohio leased a new, state-of-the-art distribution center owned by Prologis, Inc. By signing Cardinal Health to a full-building lease agreement at its DRCS Intermodal Site F, Prologis earned a 2023 CoStar Impact Award for lease of the year in Columbus, Ohio, as judged by real estate professionals based in the market. Cardinal's move-in date was Dec. 1.
Before the move, Cardinal Health was looking to relocate from the 215,000-square-foot facility it had built in 1972. But, the company wanted to maintain the favorable location in southern Columbus near Rickenbacker International Airport, Norfolk Southern Intermodal and its convenient highway access to I-71 and I-70. Timing and delays in construction materials and labor meant that ground-up construction of a new facility was off the table, especially if Cardinal Health wanted to meet its deadline of being operational in a new building in the first half of 2023.
Prologis, meanwhile, was already developing its DRCS Intermodal Site F located at 9756 Heartland Court, part of its 15-year development vision to develop land around the Rickenbacker Airport. Prologis was able to quickly adjust its design plans and build a more sophisticated build-to-suit property specifically tailored to Cardinal Health's requirements. Building materials had already been ordered and procured, eliminating the standard 12-14 month lead time and avoiding higher construction costs that were right around the bend. The same deal negotiated today would have cost 30% more.
About the Project: DRCS Intermodal Site F at 9756 Heartland Court in Columbus, Ohio, is a 574,560 square feet industrial property located on 68.4 acres in southern Columbus in Pickaway County. The one-story property is owned by Prologis, Inc., overlooks Rickenbacker International Airport and will be the new home of Cardinal Health, which is part of the healthcare and social assistance industry.
What the Judges Said: "The reason I chose DRCS Intermodal Site F was for their ability to pivot. We hear regularly that building spec is difficult in today's market, but in this case spec space saved the day. Prologis was able to quickly pivot to meet the needs of an important company here in Central Ohio and not only meet but exceed their expectations." — Stephen Gale, economic development specialist at the City of Westerville.
Molly Leach, senior vice president of CBRE, praised the lease's "short time frame to pull off such a large distribution facility hub."
They Made It Happen: A Prologis team of John Underman, vice president and market officer, and Ben Struewing, senior vice president and investment office worked with Executive Vice President Philip Pelok, Executive Vice President Rick Trott, and Vice President Shelby Gumpf of CBRE togetehr with Ryan Scribner, economic development director of Pickaway Progress Partnership; and RED Architecture's David Efaw and Justin Dolan, with James D. Whitacre, managing partner at Advanced Civil Design.
