Amazon Goes On Leasing Spree, Rebounding From Dramatic Space Cuts

While most large U.S. companies have been focused on downsizing the total square footage of the properties that it leases, Amazon is expanding. 

In Q1 2024, Amazon aggressively shifted gears and resumed leasing large industrial spaces across the U.S. 

According to a report published by BisNow, the e-commerce giant signed deals for six properties each over 1 million square feet in early 2024 alone. The move comes after a period of reevaluating lease strategies after its explosive growth phase during the pandemic. 

Amazons new leasing strategy has outpaced the company’s closures in 2024, and that trend is only a continuation of 2023’s Q4. According to a report published by CoStar, this year Amazon has already matched the number of leases larger than 1 million square feet by the company in all of 2023.  

The fast resurgence in Amazon’s leasing activity comes after a notable pause, reflecting a broader strategy to optimize its logistical operations to meet e-commerce demands.  

Among the new leases is a 1.2 million square foot space in Glendale, Arizona, part of a broader trend of expanding into strategically located industrial hubs.  

This massive expansion is complemented by Amazon’s financial performance, with the company reporting a record $143.3 billion in revenue last quarter — up 13% year-over-year. 

It’s worth noting that more than 100 of Amazon’s smaller spaces have become available for direct lease or sublease since the start of 2022. 

According to CoStar, the typical size of Amazon-leased spaces available for direct lease or sublease in 2024 averages 132,000 square feet, with 90% of these properties being less than 250,000 square feet. 

As Amazon adjusts its strategy, sectors linked to e-commerce — such as logistics, warehousing, and supply chain management, are bound to benefit from new opportunities created from larger leases.