There’s Amazon and Then There's Everyone Else in Industrial
September 7, 2021 - On pace to absorb nearly 120 million square feet of space a year, the e-commerce giant can't help but make an impact on commercial real estate.
Of the ten largest industrial projects underway in the US this year, Amazon accounts for eight of them, with a total footprint of 28.3 million square feet—an area about the size of New York City’s Central Park.
Something important to remember, though, with all the focus on Amazon, is everyone else.
“The flip side to this discussion is all the small to mid-sized tenants that drive industrial but don’t get the attention that Amazon gets,” Forster says. “Industry estimates indicate that the mid-sized tenant—under 75,000 square feet—is driving about 80% of industrial deals. These are auto parts manufacturers, local machine tool businesses, suppliers, et cetera, that are important to the overall flow of the sector. There also are many mom-and-pop e-commerce businesses that support Amazon that have been helped by Amazon’s rapid growth.”
One takeaway observation: Don’t get so focused on Amazon that you miss other important potential investments, opportunities, and deals.
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