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Amazon Space Consolidation Shouldn't Hurt Market

SEATTLE, WA-The extent of the company's cutbacks is currently undefined. Local experts, however, suspect it won't even be enough to make the 30-million sf CBD quiver. The super-low vacancy rates weren't 'normal,' anyway.

By Janet Parker | Updated on January 31, 2001

SEATTLE, WA-We know that Amazon.com is going to be laying off about 1,300 employees nationwide and cutting back on its facilities in hopes more cash will flow all the way to its bottom line. What isn’t exactly clear is how much square footage will pour back into the market because of it. That restructuring includes a reduction of corporate staff and the consolidation of distribution and customer service centers.

Local real estate sources estimate that the Internet merchandiser now occupies in the greater Seattle area somewhere between 750,000 sf and 1 million sf. While Amazon.com declines to verify its total office square footage or waht portion could be subject to closure, a source did tell GlobeSt.com that the newly-renovated, 257,000-sf Beacon Hill headquarters will remain, while the McDonough, GA distribution will be closed in its entirety. Amazon.com otherwise is saying only that it is closing a customer service center here and that its “Seattle distribution center will be operated seasonally.”

Despite the rash of dot-coms closing or downsizing their offices in the greater Seattle area, few in the local real estate industry seem particularly moved by Amazon’s announcement. Rob Aigner, executive director of Seattle’s Colliers International office was nonplused.

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