Following Amazon’s Q1 loss of $3.8B, its first since 2015, company leaders said in last week’s earnings call the warehouse and retail giant has excess capacity in its network for fulfillment and transportation.
Between Year End 2019 and Year End 2021, Amazon’s footprint for fulfillment and data centers increased from 192.7MSF to 387.1MSF. Most of the company’s space is leased, not owned, and analysts estimate Amazon accounted for roughly 15% of new demand and net absorption in the Industrial sector in 2021.
Amazon officials speculate the company will likely reduce its pace of leasing for the next 12-18 months to assess whether the current situation represents a temporary weakening in demand for what has been an otherwise strong period. (Source)