Arlington: Williams-Sonoma’s regional hub could bring up to 600 jobs
But the details of the specialty home furnishings and gourmet cookware retailer’s plans for its latest distribution hub are still being hammered out, said Bruce Payne, Arlington’s economic development manager.
“Right now, they have estimated they expect to hire 300 to 400 new hires, which could grow to 500 or 600 news hires in the next two years,” Payne told the Dallas Business Journal.
Those new jobs, as well as the property taxes and merchandise moving through the distribution hub will bring a positive economic impact to the city, Payne told me.
Payne has sketched out some tax rebates for Williams-Sonoma (NYSE: WSM), which includes a 65 percent tax abatement for seven years on business personal property and a 50 percent tax abatement for seven years on taxable inventory within the 821,502-square-foot distribution center.
The economic incentives are expected to be up for a vote before Arlington’s City Council on May 13.
The distribution center at 4900 Sherry St. near Interstate 20 and State Highway 360 in Arlington was the only facility of its kind available for lease at the time of the deal.
“This deal is nice for us, but it’s a double-edged sword,” Payne told me. “We don’t have a lot of industrial space to lease in Arlington.”
The city’s industrial space has a vacancy rate below 5 percent. If the city had space to lease, Payne said he’d be able to bring more tenants into Arlington.
“Hopefully this deal will inspire other developers to bring new development to Arlington,” he said.
Developers in North Texas have been racing to build speculative industrial development, spurred by a number of large industrial tenants circling the market.