Warehouses proposed for Analogic site after Amazon deal falls apart

PEABODY — Developers have put forward plans for a 710,000-square-foot warehouse project to take the place of Analogic Corp.'s former headquarters in Centennial Park, a location that was previously under consideration by Amazon.com Inc.

On Thursday night, the proposal was presented to the city's Planning Board for the first time. If it receives approval, the 60-acre property at 8 Centennial Drive is slated to accommodate four new warehouses, with leases secured by more than a dozen businesses. Steve Morris, the senior director of Tishman Speyer, the New York-based real estate firm behind the project, provided this information.

Tishman Speyer, founded in 1978, is entering the industrial sector for the first time with the Centennial Drive property.

"The company intends to finalize the purchase of the property, currently owned by Analogic, during the second quarter of 2024. Following the closing, Analogic will have a one-year transition period to wind down its operations on the premises," Morris explained.

Selling the property would allow construction of the warehouses to begin in phases in 2025 and conclude in 2026 or 2027. The largest warehouse would be 266,760 square feet, the second largest would be 175,800 square feet, and the two smallest would each be 134,000 square feet, according to plans submitted to the city.

The developers expect the warehouse complex to employ about 1,000 workers. They plan to reduce the number of existing curb cuts on the property from four to three and create 711 parking spaces, 147 truck loading docks, 74 truck parking spaces, and circulation areas and drive aisles that can accommodate large trucks and wide turns, according to the plans.

Upon completion, the two larger buildings are planned to accommodate two or three companies each, while the smaller buildings are designed to house five or six companies each. This arrangement is intended to enhance the site's accessibility for smaller businesses, Morris explained.

"We're not targeting large retailers like Target, Walmart, Lowe's, or Home Depot," Morris said at the meeting. "Instead, we want to break down the space to appeal to smaller businesses that have been squeezed out by these big-box tenants."

Tishman Speyer's aim is to prevent what nearly became the destiny of the site. In 2021, Amazon made an offer to Analogic to acquire the property and construct a single-story, 183,000-square-foot warehouse facility, which was projected to generate 400-500 jobs, as indicated in the city's records from that period.

Despite initial progress, Amazon's plan to build a warehouse in Peabody fell through in spring 2022. The company abandoned plans for many new warehouses and closed some existing ones across the country.

Tishman Speyer's new proposal for the site includes demolishing the existing Analogic office building. Analogic's headquarters was located at the site for over three decades. The company does not yet have a solid plan for where to relocate, but wants to stay as close to the current site as possible.

Established in 1967, Analogic is a company specializing in security systems engineering and manufacturing. In 2018, it was acquired by an affiliate of the private equity firm Altaris Capital Partners LLC for a sum of $1.1 billion. At present, Analogic maintains a workforce of 560 employees at its Peabody location, as stated by Rousmaniere.

In August, a portion of these scanners was installed at the recently renovated international terminals of Logan Airport, according to Rousmaniere.

"Everything is progressing at a brisk pace for the company, and we're working diligently to ensure our manufacturing facilities keep up with the substantial growth we've experienced," he remarked.

The developers responsible for the new warehouses will make another appearance before the Planning Board on December 7. Due to the project's scale, it is anticipated that the proposal will be under consideration by the board for several months.