Lead photo: Medline’s newly-leased 925,000-square-foot distribution center on Sugar Road in Tracy, CA. (Medline photo)

Medline has leased more than 1.6 million square feet of new distribution center space in Northern California less than a month after a massive fire destroyed one of the company’s largest facilities.

The Northfield, IL-based medical-surgical products distributor announced July 6 that it has signed a lease for an existing 925,000-square-foot warehouse on Sugar Road in Tracy, CA for immediate occupancy. Medline said the building is less than 10 miles from its previous Tracy facility, which was destroyed by fire on June 11.

Medline also leased a 709,000-square-foot facility in nearby Stockton, CA that is planned to open in January 2027. Together, new capacity significantly outsizes the 1-million-square-foot Tracy facility lost in the fire.

“The Medline team’s resilience, determination and commitment to serving healthcare providers have been nothing short of extraordinary,” Medline CEO Jim Boyle said in the company’s announcement. “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.”

The new Tracy facility is already largely built to meet Medline’s high-volume distribution needs, according to the company. Medline said the site is expected to begin accepting deliveries from its broader distribution network and start delivering to customers via the company’s MedTrans fleet in the coming months. The Tracy facility is also expected to eventually house many of the same AI-powered technologies used at other Medline distribution centers.

Across California, Medline said its distribution center footprint is expected to grow to nearly 5 million square feet by mid-2027, including a new 1-million-square-foot distribution center under construction in Perris, CA.

The June 11 fire at Medline’s former Tracy facility, located at 5701 Promontory Parkway, began on the roof at about 1 p.m. local time, according to the City of Tracy. Officials said early suppression efforts were hampered by a failure of the building’s private fire water system. High winds, low humidity and elevated temperatures helped the fire spread into the facility’s interior, ultimately impacting the entire warehouse.

City officials said the main fire was fully contained by June 12, but firefighters continued working for several days to extinguish remaining hot spots. As of June 16, the Promontory Fire at the Medline facility was considered approximately 85% contained, with crews working alongside demolition teams to access remaining hot spots inside the facility. Fire investigation efforts remained ongoing in coordination with the Office of the Fire Marshal.

No injuries were reported, and all employees and staff at the facility were evacuated safely. CBS Sacramento reported June 17 that Cal/OSHA planned to look into the fire as part of an ongoing safety complaint inspection that began days before the incident. Cal/OSHA did not say whether the fire was believed to be related to that complaint.

Medline is the largest provider of medical-surgical products and supply chain solutions serving all points of care. The company reported 2025 net sales of $28.4 billion and employs more than 45,000 people worldwide, with operations in more than 100 countries.