KKR to Build Warehouses as Demand for Space Outstrips Supply

KKR & Co. has turned to building warehouses after being a big buyer of the properties, as demand for space to store, distribute and manufacture goods continues to outstrip supply.

The private equity giant’s real estate unit has started its first-ever ground-up industrial developments, with eight projects underway in Atlanta, Dallas, Denver and Orlando, Florida. The properties -- midsized warehouses for last-mile deliveries and other logistics needs -- will add 1.8 million square feet (170,000 square meters) to KKR’s current 45 million-square-foot industrial portfolio.

The shift to new construction comes as Amazon.com Inc., the main driver of the e-commerce ...