Richardcyoung.com

The Online Home of Author and Investor, Dick Young

  • Home
  • How We Are Different
  • About Us
    • Foundation Principles
    • Contributors
  • Investing
    • You’ve Read The Last Issue of Intelligence Report, Now What?
  • Your Survival Guy
  • The Great Reset
  • COVID-19
  • My Rifles
  • Dividends and Compounding
  • Your Security
  • The Swiss Way
  • Dick Young
  • Debbie Young
  • Key West
  • Paris
  • Dick’s R&B Top 100
  • Liberty & Freedom Map
  • Your Health
  • Ron Paul
  • Bank Credit & Money
  • Dick Young’s Safe America
  • Your Survival Guy’s Super States
  • Critical Race Theory
  • NNT & Cholesterol
  • Work to Make Money/Invest to Save Money

Amazon Slowdown Rocks Warehouse Property Market

June 2, 2022 By Richard C. Young

By Champiofoto @ Shutterstock.com

Amazon’s slowdown in expansion and subleasing of some of its warehouse properties is causing turmoil in the market for commercial warehouse properties. This is yet another sign of the uneasiness corporations are feeling with Joe Biden’s economy. Peter Grant reports at The Wall Street Journal:

Amazon. com Inc.’s decision to throttle back on its e-commerce operations threatens to slow the growth of the industrial-space sector, one of the hottest areas of commercial property.

For now, demand from other retailers is expected to pick up the slack, supporting warehouse occupancies and rent levels, analysts say.

Rents, occupancy levels and sales volume of industrial real estate were already rising before Covid-19. They have soared even higher during much of the pandemic, as retailers led by Amazon, Walmart Inc. and Target Corp. gobbled up record amounts of space at warehouses and distribution centers.

These growth trends are slowing in some markets, in part because Amazon is now subleasing warehouse space after reporting in April its slowest growth in about two decades. Amazon is one of the largest users of U.S. industrial space, owning or leasing some 374 million square feet at the end of 2021, according to MWPVL International Inc., a Canadian supply-chain consultant that tracks Amazon demand.

The company went on an expansion tear during the pandemic to make sure it could keep up with the sharp rise in demand from homebound consumers. Its slowdown is likely to disappoint some developers who had been hoping to lease projects under way to Amazon.

Property owners in some markets might also face new competition from Amazon’s plan to sublease at least 10 million square feet of warehouse space, and possibly as much as triple that amount over time, as well as a flood of new supply from developers responding to the strong industrial market. Before the Amazon news, real-estate-analytics firm Green Street had been projecting about 400 million square feet of new industrial development in 2022.

Amazon’s sublease space “is a new form of supply,” said Vince Tibone, a Green Street analyst. “All of a sudden, a lot of it just became unleashed.”

If you’re willing to fight for Main Street America, click here to sign up for my free weekly email.

Related Posts

  • Amazon Trophy Hunting
  • World Class Stock Market Performance
  • VIDEO: Trump Rocks CPAC 2020
  • Coronavirus Infects Stock Market
  • Author
  • Recent Posts
Richard C. Young
Richard C. Young is the editor of Young's World Money Forecast, and a contributing editor to both Richardcyoung.com and Youngresearch.com.
Latest posts by Richard C. Young (see all)
  • 10th AMENDMENT: Dobbs Decision a Win for States’ Rights - June 28, 2022
  • Oil Demand Increasing Despite Growth in Renewables - June 28, 2022
  • Why Is the USDA Burying the Facts on Low-Carb Diets? - June 28, 2022

Dick Young’s Must Reads

  • Joel Salatin: Meet the Real Mr. America
  • My Smith & Wesson Revolvers Home Defense Team
  • Gold/Silver Coins No Longer Allowed in Safe Deposit Boxes
  • Democracy: The Most Dangerous and Insidious Effect of Majority Rule.
  • DONBAS: Russian Tanks Face Gauntlet of Death from Javelin Wielding Ukrainians
  • My Battle-Hardened Stock Market Strategy for the Worst of Times
  • A Look at the Future of Main Street America
  • America’s Colleges Have Become Progressive Liberal Rat Holes
  • Biden Wants to Gut the Tax Benefit of 401K Plans
  • Your Best State on Guns, Plus the 8th Wonder of the World

Our Most Popular Posts

  • FOOD SHORTAGE: Not "If," But "How Bad?"
  • One Surprising Thing You Should Know About Private Jets
  • Paris: How Hotel Lutetia Can Challenge Le Bristol Hotel?
  • The Most Controversial Restaurant in Paris?
  • Biden Running Out of People to Blame for High Gas Prices
  • Saudi Oil Is Different from U.S. Oil?
  • RECESSION? Dow 25,000, $8 Gas, Rising Interest Rates, Spell Mid-term Crack Up
  • FLORIDA DODGED A BULLET: Elected Superb DeSantis Over Unstable Gillum
  • Good News for the 2nd Amendment
  • Your Survival Guy in Paris: Awakened from His Slumber, “Dad, I’m Going to London”

Disclosure

RSS Youngresearch.com

  • Why Work When Taxes Take It All?
  • Your Survival Guy in Paris: Awakened from His Slumber, “Dad, I’m Going to London”
  • What Happens to Your Passwords When You Die?
  • Your Survival Guy: Clearing the Decks, Buying a Boat, Seeing the World and More
  • Is the Great Job Boom Over?
  • Here’s Why You Need a 15-Year Retirement Investment Plan
  • Will ESG Do to Steel Prices What It Did to Gas Prices?
  • Kellogg Cuts Loose with Split Plan
  • Apple Shares Resilient in the Face of Recession
  • MONEY TALKS: The Best Service in Paris

10th AMENDMENT: Dobbs Decision a Win for States’ Rights

What Just Happened? Fixing Its Historic Mistake

Why Work When Taxes Take It All?

Oil Demand Increasing Despite Growth in Renewables

Why Is the USDA Burying the Facts on Low-Carb Diets?

These Normal Household Products Could Disrupt Your Endocrine System

Copyright © 2022 | Terms & Conditions | About Us | Dick Young | Archives