Minneapolis Approves New 234,360-Square-Foot Logistics Hub
The city cleared plans for a 24-hour distribution center to replace the vacant Murphy Warehouse starting in 2027.
Updated on Oct. 22, 2026 in Commercial
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The Minneapolis Planning Commission has approved a development proposal to replace the vacant Murphy Warehouse at 2222 Elm St. SE with a modern distribution center. The new 234,360-square-foot facility is designed for 24-hour e-commerce fulfillment operations.
Why it matters
This project transforms an underutilized industrial site in southeast Minneapolis into a high-capacity logistics hub intended for regional consumer goods and grocery delivery. The move reflects the ongoing expansion of rapid-delivery infrastructure within dense urban neighborhoods.
The proposed 234,360-square-foot facility at 2222 Elm St. SE will feature a 32-foot clearing height and space for 250 parking stalls. The site is expected to process 10 to 12 delivery trucks daily while supporting a workforce of 400 employees.
The players
Minneapolis Planning Commission
The local regulatory body responsible for reviewing and approving zoning variances and large-scale commercial development projects in the city.
Scannell Properties
A commercial real estate developer specializing in large-scale industrial, distribution, and office projects across the United States.
Wabash Screen Door Co.
The historic building entity on the north side of the site that will be preserved during the redevelopment process.
The details
The facility will integrate robotics automation alongside powered industrial trucks to manage inventory and fulfillment. To manage traffic flow, the plan utilizes designated delivery routes for the 10 to 12 daily trucks that will depart to distribute goods directly to customers. The development includes two parking variances and preserves the historic north side Wabash Screen Door Co. structure while clearing the south side building.
Timeline
Late November 2026: Planning commission project approval.
March 2027: Planned demolition of the south side warehouse building.
May 2027: Targeted groundbreaking for the new logistics facility.
The Home Front
The approval of this facility signals a shift toward intensifying logistics activity within established urban corridors to meet consumer demand for faster fulfillment. This redevelopment reflects broader regional trends of converting legacy manufacturing space into high-velocity 24-hour distribution nodes.
Residents near the Elm St. SE site should monitor local traffic notifications as the March 2027 demolition phase approaches. Property owners in the surrounding neighborhood may want to track updates regarding the facility's 24-hour operation plan to understand long-term impacts on local logistics traffic.
The takeaway
The transformation of the Murphy Warehouse marks a significant change in how consumer goods will be staged and delivered in southeast Minneapolis. Neighbors should prepare for increased construction activity beginning in early 2027 and eventual shift in daily delivery traffic patterns near the site.
Further reading
For more updates on local industrial developments, visit the Commercial section.
Source note: This article includes information reported by Finance & Commerce.
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