Amazon Eyeing Potential $15B Warehouse Expansion
Amazon's massive logistics operation is reportedly looking for partners as it weighs leasing dozens of new facilities.
The e-commerce giant is considering spending as much as $15B on roughly 80 new logistics facilities in the U.S., Bloomberg reported, citing unnamed sources. The firm is open to leasing the properties for 15 to 25 years, even funding some sites directly.
Amazon is seeking sites in both cities and rural areas, largely to serve as delivery hubs, although some may also be multistory fulfillment centers, Bloomberg reported.
The firm sent out requests for proposals from potential capital partners last week before President Donald Trump announced a sweeping global tariff regime that went into place as of Wednesday.
“Meetings like this with our capital partners are routine and part of the normal due diligence process, as we consider potential, future projects,” Amazon spokesperson Steve Kelly said in a statement.
No plans have been finalized, but a potential wave of leasing could represent a shift in real estate strategy.
It gobbled up an outsized share of U.S. industrial space between 2020 and 2022 but put nearly 100 of those facilities up for sublease in 2023 and held off on construction on some future developments after it realized it overshot its needs.
While it was shedding leased space amid a historic run-up in industrial rents, Amazon started buying to develop its own facilities, spending $920M in 2023 and more than $2B last year.
Amazon’s anticipated growth comes as demand for industrial space softens nationally. Industrial vacancy nationwide sat at 7.1% at the end of last year, according to JLL — its highest level since 2014. Net absorption fell 35.1% year-over-year, according to the brokerage.
Warehouse space is not the only area of planned significant investment for Amazon in 2025. The company intends to spend $100B on its cloud computing business, putting money into data centers, internal chip manufacturing and equipment acquisitions as it seeks a spot in the ongoing AI arms race.
CORRECTION, APRIL 9, 4:20 P.M. ET: This story has been updated to emphasize the preliminary nature of Amazon's leasing discussions.
