Today’s CRE Scoops – December 13, 2019

Amazon appears to be the largest lessor of warehouse space in America. Credit: Scott Lewis/Flickr; Pixabay

Amazon has opted to lease the vast majority of its massive U.S. warehouse footprint, which has crowned it the largest tenant for this type of space in the country, according to new reporting by The Real Deal. Amazon leases almost 154 million square feet of warehouse space, while owning about four million square feet, per its filings with the Securities & Exchange Commission. The ecommerce giant told investors in an annual report that it had spent $3.4 billion on property and equipment in 2018 and is carrying $26.6 billion in operating lease commitments over the next five years. Its leasing strategy has set a new supply chain standard, at least for ecommerce companies, and allows Amazon to keep costs down and stay nimble as it adjusts its shipping model, according to experts interviewed in the story. “Leasing inherently makes you reevaluate your needs every 10 to 15 years,” said Jeff Randolph, a former director for the worldwide real estate team at Amazon. (The Real Deal)

The U.S. Commerce Department has just released retail sales figures for the month of November, showing a 2% increase over October’s numbers. That followed a newly revised .4% increase for October. November’s retail sales figure did not meet the expectations laid out by economists in a recent Reuters poll, which showed poll showed an anticipated acceleration of .5% in November. The figures show that U.S. consumers may be cutting back on their discretionary spend. But some of the largest growth came from sales of electronics and appliances (up .7% from October) and online and mail-order sales, which were up .8% compared to October.  (CNBC)

As the retail real estate sector pushes through its reinvention, executives at ICSC’s Deal Making Conference in New York told NREI they see good growth areas in 2020. Food-and-beverage category is ballooning into more retail space, while grocery-anchored shopping centers remain one of the most popular property types nationally. Joseph Coradino, CEO of PREIT, a regional mall REIT, said he expects retail investment sales activity to increase in 2020. (NREI)

More News to Note:

Investment Firms Leste, Global City Development Team on $2.5B Initiative Targeting SFR Space

Singapore Sovereign Wealth Fund Makes Big U.S. Shopping Center Investment 

NYC’s Extell Development Pulls in $700M to Refi its Lower East Side, Hudson Yards Luxury Rental Buildings

NYCHA Residents Sue Agency, Alleging Years of Errors in Processing Rent Payments


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