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Amazon is once again tearing down large blocks at lightning speed

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Amazon has begun leasing warehouse space with gusto again, signing six leases worth more than 1 million SF so far in 2024, which is as many leases of this size as the company signed in all of 2023, CoStar reports.

In the first quarter, Amazon leased approximately 6.5 million SF, according to CoStar, which is significantly more than the 2 million SF the company brought to market for direct or sublease in the first quarter and the most in any quarter since it took over 8 million SF in the first quarter of 2022 , according to CoStar data.

Amazon’s recent leasing activity appears to indicate a turnaround in the online retail giant’s industrial absorption, which was put on hold after a surge in leasing in 2020 and 2021 in response to a surge in e-commerce demand during the pandemic.

“(Amazon) was taking up so much space because it was fueled by the pandemic,” said Stephanie Rodriguez, national director of industrial services for Colliers Bisnow in December. “Now business has stabilized and they are evaluating and continuing to add space where it makes the most sense.”

According to the Phoenix Business Journal, one such deal in the first quarter took place in Glendale, Arizona, where Amazon will acquire 1.2 million SF at The Cubes in the Glendale industrial park. The e-commerce giant has been occupying this space for 10 years.

In 2023, Amazon also opened a 1.2 million SF storage and distribution center in Mesa, Arizona, the largest of its kind in the US, PBJ reports.

According to CoStar, Amazon continues to close some of its smaller facilities, and by 2022, more than 100 of them will be available for sublease or outright leasing. The company also offers some of its larger facilities for sublease.

Amazon reported global revenue of $143.3 billion last quarter, up 13% year-over-year. Worldwide operating profit in the first quarter was $15.3 billion, the company’s highest quarterly income ever.