Postal Service leases more large spaces for S&DCs

Steve HutkinsBlog, Featured

Nearly all of the 210 Sorting & Delivery Centers announced so far are located in currently operating post offices and processing centers with excess space that’s being utilized to consolidate carriers. But relocating carriers to S&DCs creates excess space in the back of post offices. In the end, the amount of excess space is not reduced. It’s just transferred from one facility to another. 

In some cases, however, the Postal Service is leasing large new buildings to serve as S&DCs. The result in these cases in a net increase in excess space — and a big increase in lease costs as well. 

Several of these large, newly leased S&DCs are included in a notification sent from the Postal Service to unions on January 21, 2026. The notice (which attaches an earlier list shared on October 1, 2025) identifies several S&DCs that will be launching over the coming months. Some of them were not included in the update list shared by the Postal Service with the Postal Regulatory Commission as part of the Annual Compliance review (ACR) (discussed in this post).

The ACR list included about 150 S&DCs that have already launched and 60 that are scheduled to launch through October 2026. But it did not include five other S&DCs, three of which have launch dates scheduled for June 2026. It’s not clear why they weren’t on the ACR list.

Here’s a list of these additional S&DCs and their spoke offices. Also included below is the Phoenix North Valley S&DC, for which the notification shows a change in spokes.

The original USPS notification is here; a list with more details is on Google Docs here.

FacilityTypeAddressLaunch DateTotal Routes
MEDLEY FL S&DC*Hub11150 NW 122nd ST BUILDING 7, MEDLEY, FL 331786/13/2026
HIALEAH - HIALEAH LAKES STATIONSpoke1500 W 84TH ST, HIALEAH, FL 330186/13/202624
HIALEAH - MAIN OFFICESpoke325 E 1ST AVE, HIALEAH, FL 330106/13/202623
HIALEAH- PROMENADE STATIONSpoke3690 W 18TH AVE, HIALEAH, Fl 330126/13/202639
MIAMI - BLUE LAGOON BRANCHSpoke6200 NW 7TH ST, MIAMI, FL 331266/13/202634
MIAMI - DORAL BRANCHSpoke1700 NW 97TH AVE, DORAL, FL 331726/13/202624
MIAMI - MARTIN LUTHER KING BRANCHSpoke6700 NW 27TH AVE, MIAMI, FL 331476/13/202625
MIAMI - WEST CARRIER ANNEXSpoke2200 NW 72ND AVE STE 700, MIAMI, FL 331526/13/20266
MIAMI - MILAM DAIRY ANNEXSpoke2200 NW 72ND AVE STE 702, MIAMI, Fl 331526/13/202639
OPA LOCkA • MAIN OFFICESpoke550 FISHERMAN ST, OPA LOCkA, FL 330546/13/202617
LEESBURG FL 5&DC*Hub3610 W MAIN STREET, LEESBURG, FL 347486/13/2026
FRUITLAND PARK - MAIN OFFICESpoke104 W MILLER ST, FRUITLAND PARK, FL 347316/13/20268
GROVELAND - MAIN OFFICESpoke304 W BROAD ST, GROVELAND, FL 347366/13/202614
HOWEY IN THE HILLS - MAIN OFFICESpoke105 S FLORIDA AVE, HOWEY IN THE HILLS, FL 347376/13/20262
LADY LAKE - MAIN OFFICESpoke850 TEAGUE TRL, LADY LAKE, FL 321596/13/2026124
LEESBURG - MAIN OFFICESpoke1201 S 14TH ST, LEESBURG, FL 347486/13/202642
WILDWOOD - MAIN OFFICESpoke316 SHOPPING CENTER DR, WILDWOOD, FL 347856/13/20269
YALAHA - MAIN OFFICESpoke8712 COUNTY ROAD 48, YALAHA, FL 347976/13/20261
PHOENIX AZ NORTH VALLEY S&DC - PHX- NORTH VALLEY DOC*Hub2502 W GRANDVIEW RD, PHOENIX, AZ 850236/13/2026
GLENDALE - MAIN OFFICESpoke5955 W PEORIA AVE, GLENDALE, AZ 85302REMOVEDN/A
SUNNYSLOPE ANNEXSpoke9623 N 7TH ST, PHOENIX, AZ 85020 (OR 9635 N 7TH ST)6/13/202661
SHAW BUTTESpoke12208 N 19TH AVE, PHOENIX, AZ 850296/13/202650
DANVILLE VA S&DC - MAIN OFFICEHub105 TEAL CT, DANVILLE, VA 245416/13/202644
DRY FORK· MAIN OFFICESpoke656 DRY FORK RD, DRY FORK, VA 245496/13/20263
SALT LAKE CITY UTAH WEST S&DC*Hub1095 SOUTH 4800 WEST, SALT LAKE CITY, UT 84104TBD
MAGNA - MAIN OFFICESpoke8470 W MAGNA MAIN ST, MAGNA, UT 84044TBD10
SALT LAKE CITY - WEST VALLEY BRANCHSpoke3490 S4400 W, SALT LAKE CITY, UT 84120TBD56
SALT LAKE CITY - MPASpoke1795 W 2100 S, SALT LAKE CITY, UT 84199TBD70
SALT LAKE CITY - FLETCHER F. ACORD AMFSpoke320 N 3700 W, SALT LAKE CITY, UT 84122TBD14
SAN JUAN PR SDCHub525 CALLE JUAN CALAF STE 101, SAN JUAN, PR 00918TBD
*new building in the bid cluster

Here’s a rundown of the newly leased S&DCs and some of the other facilities in the January notification to the unions that weren’t on the ACR list.

Pompano Beach FL S&DC

Pompano Beach FL S&DC (LoopNet)

The Pompano Beach S&DC, appears on last month’s ACR list, but we start here because it’s an early example of the emerging trend of leasing large new spaces for S&DCs. It was discussed in this post back in November 2023, when word first came out that it would be opening. 

The Pompano Beach S&DC took 250 routes from five post offices. The excess space left behind led to a decision to relocate one of them, the Tropical Reef Station.

Last week the Postal Service announced the opening of Tropical Reef’s new location, a small storefront in a shopping plaza. Something similar may happen to the other spoke offices.

Medley FL S&DC

Medley FL S&DC (Prologis)

Another large, newly leased S&DCs is in Medley FL (discussed in this post). Its launch date is June 13, 2026, but it doesn’t appear on the ACR list.

The Medley S&DC will consolidate 230 carrier routes from nine spoke offices.

It will be located in a brand new 140,000 square-feet logistics warehouse at 11150 NW 122nd Street (Building 7) that’s part of the Prologis Miami International Tradeport Park, No information about the lease costs has been made public.

Leesburg FL S&DC

Leesburg, FL S&DC (Source: CBRE)

The Leesburg S&DC is located at 3610 West Main Street. Its launch date is June 13, 2026.  It too was not included in the ACR list.

The union notification describes it as a new building for bid purposes.

According to a property listing this facility was built in 2008 for Coca Cola, which leased it until June 2024. The CBRE listing says it’s a cold storage warehouse with “26,875 square feet of freezer space and 70,625 square feet of cooler space, all operating at a safe and consistent 34ºF.” It’s not clear why the Postal Service would lease such a space.

Perhaps there’s some confusion about the location. That’s also the address for Saddle Creek Logistics Services, which has partnered with the Postal Service in the past.

In any case, on the USPS Facilities Report, the Leesburg S&DC is called The Villages. It’s about ten miles from the retirement community of the same name, subject of the 2020 documentary Some Kind of Heaven and site of dueling, pro- and anti-Trump demonstrations a few weeks ago.

The Villages S&DC will take 200 routes from seven offices, including 124 routes from the Lady Lake post office, which serves The Villages retirement community.

Salt Lake City UT S&DC

Salt Lake City UT S&DC (LoopNet)

The Salt Lake City S&DC is located at 1095 South 4800 West. Its launch date is listed as TBD, which is perhaps why it wasn’t included in the ACR list.

The Salt Lake City S&DC will take 150 carrier routes from four spoke facilities: Magna Main, West Valley Branch, the Salt Lake City MPA, and the Fletcher F. Acord AMF (320 N 3700 W).

The union notification list describes the Salt Lake City S&DC as a new building for bid purposes, but it was built in 2012. It has 150,300 square feet and parking for 172.

An October 1, 2025, posting on the website of the real estate company CoStar said that FedEx had leased this space and moved in, but according to a November 2025 Facebook post, CoStar negotiated a 10-year lease with the Postal Service at around that time.

The lease listing says the cost was advertised as $102,204 a month, $1,226,448 a year. It’s not known what the Postal Service is paying.

Perhaps some of these new costs will be offset by changes at the four spokes. The Magna office is leased; perhaps the retail services will move to a smaller, less costly space, like the Tropical Reef Station that lost its carriers to the Pompano Beach S&DC. The Postal Service owns the other three spokes of the Salt Lake City S&DC, so perhaps one or more will be sold. 

Phoenix North Valley AZ S&DC

Phoenix North Valley S&DC (Google Earth)

The Phoenix North Valley S&DC is located at 2502 W. Grandview Road. It’s a Delivery Distribution Center (DDC) that the Postal Service has owned since May 1999. The USPS Owned Facilities Report says it has about 55,000 square feet.

This S&DC was included on the ACR list, but the union notification shows a change. North Valley was originally planned to take carriers from the Glendale and Shaw Butte post offices, but Glendale has been removed from the list, and Sunnyslope Annex has been added.

The North Valley S&DC will take 111 routes from Shaw Butte and Sunnyslope. The launch date remains June 13, 2026.

Danville VA S&DC

Danville VA S&DC (Google Streetview)

The Danville VA S&DC is the main post office in Danville. It’s located at 105 Teal Court. This S&DC was not included in the ACR list.

The Danville post office already has 44 routes. The union notification shows only one spoke, the Dry Fork post office, which is a good distance away, 15 miles from the S&DC. Dry Fork has just three routes, so not many carriers will need to drive the extra distance to their routes.

The historic New Deal Courthouse post office in Danville at 700 Main Street (built in 1934) is not part of the carrier consolidation. It’s now a finance station with no routes to consolidate. It’s open only four hours a day, operations having been reduced in 2012 due to “recent economic changes within the Postal Service.”

San Juan PR S&DC

San Juan P&DC, possible site of San Juan S&DC (Google Streetview)

The new S&DC in San Juan, Puerto Rico, has a launch date to be determined. The list shows no spokes yet, but there are several post offices with delivery units that could be consolidated, including Hato Rey, Loiza Street, Cupey and Catano.

On the union notification, the address of this S&DC is 525 Calle Juan Calaf Ste 101, and it is already listed on the USPS locator page that way. This, however, is the address of an OfficeMax.

OfficeMax and its parent Office Depot have been reducing their retail footprint, so it’s possible that this store will close and the Postal Service will move in. But there’s nothing on the internet to indicate the San Juan location is closing, and the OfficeMax store locator shows it operating as of February 17, 2026.

The USPS leased facilities report lists this same address for a facility described as a P&DC/S&DC. It shows zero square footage for the interior and site, which is sometimes indicative of a new facility. But the union notification does not say it’s a new building in a bid cluster.

The main San Juan P&DC is located about a mile away, at 585 Ave FD Roosevelt. It doesn’t seem likely there would be two P&DCs in such close proximity. Perhaps the S&DC will be colocated not with a new P&DC but with the currently operating P&DC, and there’s just a mix-up over the address. 

If that’s not the case, the actual location of the San Juan S&DC is something of a mystery.

— Steve Hutkins

(Featured image: Salt Lake City UT S&DC)