Amazon, which has been closing, canceling or delaying the opening of its logistics amenities since April 2022—when it admitted {that a} voracious enlargement in 2021, topping out at greater than 400M SF, had grossly overestimated the speed of e-commerce progress—will proceed to cut branches off its logistics community in 2023.
A brand new survey by MWPVL Worldwide, a logistics advisor that tracks Amazon’s community, says the tally of shuttered or canceled parts of Amazon’s mammoth industrial footprint has now grown to 99 amenities encompassing greater than 32M SF in 30 states.
This whole grew by practically 25% within the fourth quarter, up from MWPVL’s rely on the finish of September of 66 amenities masking practically 25M. MWPVL, which issued an in depth map specifying the place every of the canceled, closed or delayed amenities are situated, stated the closures are ongoing.
The lion’s share of the closed amenities is situated alongside the Boston—Washington DC hall and in California, Florida and the Chicago metro. Success facilities and last-mile supply stations are the power sorts most impacted by the closures, based on MWPVL.
Amazon disputed the brand new whole in an announcement this week which accused MWPVL of “[saying] we’re promoting or abandoning land or buildings that we’re retaining, or buildings that we by no means had in our possession to start with”—with out specifying which of the amenities on the advisor’s map are incorrect.
In line with MWPVL information, regardless of its across-the-board effort to trim warehouse area, Amazon nonetheless has an estimated 231 amenities encompassing 82M SF within the planning phases, most of which had been earmarked for an enlargement of its last-mile supply attain that was deliberate earlier than the cost-cutting started in Q2 2022.
Whereas delaying the opening success facilities, together with newly constructed multi-story mega-warehouses—which is able to stand empty for as much as two years—Amazon has but to determine a method for final-mile supply stations which are nearing completion, MWPVL stated. In line with the report, the corporate is alternating between opening supply stations in new markets or instantly itemizing new supply amenities for sublease in established markets.
Concerning land—Amazon acquired greater than 4,100 acres of it through the pandemic—the corporate initially stated final 12 months it wasn’t giving up on any of the areas the place it was shutting down growth within the close to time period.
Nevertheless, in H2 2022, Amazon executed a strategic shift of capital expenditure sources from its e-retail community to an enlargement of data-processing infrastructure for its top-priority progress sector—Amazon Net Providers, the worldwide cloud computing chief.
In January, Amazon started promoting off a few of the land and property it acquired for brand new warehouse growth throughout its continuous acquisitions binge in 2021.
Dermody Properties bought a four-building workplace campus in Milpitas from Amazon—and can convert the 29-acre Bay Space web site into one thing that when was a part of Amazon’s authentic plans for the property: a 490K SF warehouse.
The e-commerce big purchased the vacant 395K SF Metro Company Heart for $123M in October 2021 after the land was entitled by Milpitas for industrial use, based on a report within the San Francisco Enterprise Instances. On the time, Amazon was nonetheless scooping up actual property close to massive cities that may very well be used for brand new warehouses.
