fbpx

Amazon’s Strategy for Big Industrial Space Cuts

Retail behemoth Amazon is generally tight-lipped about its real estate strategy, and it didn’t say much about its decision to trim its industrial portfolio earlier this year. Still, through its actions, a strategy is coming into focus: Small spaces go first.

A new analysis of the 48 Amazon distribution centers across the United States listed as available for lease on CoStar through October this year found that Amazon’s efforts to trim its industrial portfolio have concentrated on shedding smaller facilities, often in secondary markets. In fact, a CoStar review found that smaller distribution facilities of less than 100,000 square feet are disproportionately represented in the space Amazon has put up for sublease in 2022 by a ratio of two-to-one.

While the company’s cancellation of plans to construct tens of millions of square feet of distribution space has been widely reported, the review looks at existing facilities Amazon has either put up for sublease or allowed to go back on the market by choosing not to renew existing leases approaching expiration. Together these properties total 7.8 million square feet around the country.

*Article courtesy of Costar

For more information about New Jersey or Philadelphia health care space, industrial space, retail space, office space, land or other New Jersey and Philadelphia commercial properties, please call 856-857-6300 to speak with Jason Wolf (jason.wolf@wolfcre.com) at Wolf Commercial Real Estate, a leading New Jersey and Philadelphia commercial real estate broker that specializes in both New Jersey and Philadelphia cannabis, healthcare space, office space, retail space, land and New Jersey and Philadelphia industrial space.

Wolf Commercial Real Estate, a full-service CORFAC International brokerage, and advisory firm, is a premier New Jersey and Philadelphia commercial real estate brokerage firm that provides a full range of New Jersey and Philadelphia commercial real estate listings and services, property management services, and marketing commercial offices, medical properties, industrial properties, land properties, retail buildings and other New Jersey and Philadelphia commercial properties for buyers, tenants, investors, and sellers.

A New Jersey and Philadelphia commercial real estate broker with expertise in New Jersey and Philadelphia commercial real estate listings, Wolf Commercial Real Estate provides unparalleled expertise in matching companies and individuals seeking new New Jersey and Philadelphia office space, New Jersey and Philadelphia retail space, or New Jersey and Philadelphia industrial space with the New Jersey and Philadelphia commercial properties that best meets their needs.

As experts in both Philadelphia and New Jersey commercial real estate listings and services, the team at our commercial real estate brokerage firm provides ongoing detailed information about Philadelphia and New Jersey commercial properties to our clients and prospects to help them achieve their real estate goals.  

Please visit our websites for a full listing of South Jersey, Philadelphia, and New Jersey commercial properties for lease or sale through our Philadelphia commercial real estate brokerage firm.

Share

Share

Share