Amazon, which doubled the size of its logistics network at warp speed during the pandemic to well over 400M SF, now is proving that it can backpedal nearly as fast as it grew.
Since disclosing earlier this year that it overestimated the growth rate for e-commerce, resulting in too many warehouses and warehouse workers—and the first quarterly losses for the e-commerce titan since 2015—Amazon has been busy culling its industrial footprint.
The e-retail giant has used every space-reduction method in its toolbox, including shuttering warehouses, subleasing a chunk of its estimated 370M SF of leased industrial space, canceling new fulfillment center projects that haven't broken ground and by delaying the opening of newly built warehouses for up to two years.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
