In the first five months of the year, Amazon has signed six leases for U.S. warehouses larger than one million square feet, matching the total number of such leases it signed in all of 2023. This trend, noted by CoStar, highlights Amazon’s shift towards larger facilities located primarily in the western U.S., with three in Phoenix, and one each in Southern California’s Inland Empire, Ontario Ranch, and Stockton. Amazon is moving away from smaller and mid-sized warehouses and East Coast locations, influenced by forecasted labor disputes on the East and Gulf Coasts. The expiring labor contract for the International Longshoremen’s Association poses risks of strikes, while a stable labor contract for West Coast ports until 2028 offers reliability. Larger warehouses are preferred for their ability to utilize advanced automation and robotics technologies efficiently, justifying the investment in these expansive facilities.
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