The new leases represent a 45% expansion of the company’s regional footprint and will support healthcare providers across the West Coast.
Medline has signed lease agreements for two distribution centers in Northern California totaling more than 1.6 million square feet. The expansion comes one month after a fire on June 11 destroyed the company’s 1 million-square-foot warehouse in Tracy.
The new capacity represents a 45% expansion of the company’s customer-facing Northern California footprint compared to June, according to a company release. The first facility, a 925,000-square-foot warehouse on Sugar Road in Tracy, is available for immediate occupancy and is located less than 10 miles from the previous site.
Operational Timeline and Technology
Medline says the Tracy facility is already structured to meet high-volume distribution needs. Medline plans to begin accepting deliveries and shipping to customers using its dedicated fleet of trucks in the coming months. The site is also expected to eventually house artificial intelligence technologies similar to those used at other company locations.
A second facility in Stockton, measuring 709,000 square feet, is scheduled to open in January 2027. Together, the Tracy and Stockton sites will serve healthcare providers and customers throughout Northern California.
“The Medline team’s resilience, determination, and commitment to serving healthcare providers have been nothing short of extraordinary,” says Jim Boyle, CEO, in a release. “Securing and standing up a new facility in less than one month—and increasing our customer-facing footprint in Northern California by an incredible 45%—speaks to our incredible dedication to making healthcare run better every day for our customers.”
Regional Impact and Growth
Across California, Medline’s distribution center footprint is expected to continue to grow and reach nearly 5 million square feet by mid-2027. This includes a new 1 million-square-foot distribution center being built in Perris.
Doug Golwas, chief commercial officer, notes that the company is focused on meeting the needs of healthcare providers as they treat patients. “We are grateful for the collaborative teamwork from healthcare providers across the West Coast over the past few weeks as we worked to get them what they need, when and where they need it,” says Golwas in a release.
Johnny Glover, senior director of operations for the original Tracy site, will continue as the leader for the new facility. “I could not be prouder of our team and the way they’ve responded in the face of adversity,” says Glover in a release. “The team’s commitment to our healthcare customers and their patients who rely on us every day is what is allowing us to keep serving our customers during an incredibly challenging time.”
Photo caption: Medline’s newly leased 925,000-square-foot distribution center on Sugar Road in Tracy, Calif.
Photo credit: Medline
