Minneapolis Approves New Scannell Warehouse Facility

The Minneapolis Planning Commission approved a 234,360-square-foot distribution center at 2222 Elm St. SE.

Updated on Oct. 22, 2026 in Commercial

Minneapolis Approves New Scannell Warehouse Facility

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The Minneapolis Planning Commission has cleared a development plan for a new distribution center at the vacant Murphy Warehouse site. Scannell Properties intends to construct a 234,360-square-foot facility to serve as an e-commerce fulfillment hub.

Why it matters

The facility is designed to support modern e-commerce fulfillment, providing rapid distribution of consumer goods and groceries. The project is expected to create 400 jobs for the local community upon completion.

The proposed 234,360-square-foot facility will feature 250 surface parking stalls and support 10 to 12 daily delivery trucks. Operations will utilize a mix of robotics and powered industrial trucks to manage inventory.

The players

Minneapolis Planning Commission

This local government body is responsible for reviewing and approving land-use development projects within the city of Minneapolis.

Scannell Properties

This is a private real estate development firm that specializes in the construction of large-scale industrial and distribution facilities.

University of Minnesota

This public research university owns the property located at 2222 Elm St. SE where the development is planned.

The details

The development plan involves demolishing the south side of the site, while the historic Wabash Screen Door Co. building on the north side will be preserved. The new structure will operate around the clock with a 32-foot clearing height to maximize storage capacity.

The planning commission approved the development proposal in late November 2026.
Demolition of the current warehouse is scheduled for March 2027.
Groundbreaking for the new facility is targeted for May 2027.

Culture Shift

This development aligns with the trend of industrial infill redevelopment, where cities repurpose vacant urban land to meet demand for logistics space. It marks a departure from traditional peripheral warehousing by bringing high-volume fulfillment centers closer to urban population centers.

Residents in the area should prepare for increased heavy vehicle traffic, as the facility is designed to handle daily deliveries. The project will also bring 400 new employment opportunities to the community.

The takeaway

The transformation of the Murphy Warehouse site highlights the growing city-wide need for modern logistics infrastructure. Local residents should anticipate changes to neighborhood traffic patterns once the facility begins its 24-hour operations.