Seems like acquisitions are picking up for Amazon and they are starting to do more of their own developments. Just picked up 300 acres in the Bay. Anyone else think that their new strategy of owning/developing must have an impact on the industrial market? Realize that there is no way that they can support their crazy levels of demand for space on their own, but still should have an impact.
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That location will be interesting. The specific plan for that area failed at multiple hearings. Pleasanton and Livermore will have environmental input and they clash on a lot of things politically. Especially after that outlet mall got built and brought worse conditions than the traffic report really projected. Very active local residents and advocacy groups. Wealthy Pleasanton residents will not want trucks crushing Stanley Blvd. Maybe a lot of it will be office who knows.
Amazon are crazy. Taking down so many buildings all over and yes definitely doing their own stuff too.
Jokes on those old residents. There won't be trucks. Just giant airships.
What they got was a STEAL but only because of what pere797 mentioned. To me its a 75MM lottery ticket. Otherwise my experience with Amazon is they are perfectly happy paying developers rent as 8%+ return on costs for their last mile van stuff at least.
I believe they have been acquiring other land and looking at redevelopment opportunities as well. They have a specific group within their real estate arm that is dedicated to acquiring/developing their own projects. I think this is just the start.
All I can say is we are not seeing any demand for slow down from Amazon. Next year I'll probably finance 2 IXDs, 3 AMZLs, and an ARS.
Wouldn’t be surprised if within the next 5-10 years, Amazon forms some spin off Industrial REIT or separate entity fully dedicated to RE acquisitions/development.
I don't think they want anything to do with their own logistics real estate because they know how fast the building specs are changing. Much better to have a third party own it and when you need the latest and greatest, go have someone else build it for you.
That being said, they may want to own very critical / irreplaceable last mile real estate. Who knows.
They are already buying up a ton of RE on their own Amazon platform so I disagree.
That's so useful to know!
https://www.bisnow.com/national/news/industrial/amazon-shifting-industr…
Can't speak to their industrial side. However, their new Amazon Fresh Grocery concept, which essentially removes the need for a cashier, just delivered a few locations in my market.
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