Industrial owners and brokers reacted to the news that Amazon is moving toward owning more of its distribution network, which Bisnow first reported, with a mix of concern and defiance at Bisnow’s Northeast Industrial and Urban Logistics event Wednesday…
Amazon’s real estate needs — and willingness to pay soaring rents to meet them — have shifted development patterns, leaving some landlords to question whether there will be other tenants that will occupy the same type of space that Amazon would.
Amazon has taken up several multi-story buildings in New York City, including leasing three stories across 336K SF at DH Property Holdings and Goldman Sachs’ 640 Columbia Ave. in Red Hook and 200K SF across two stories at Prologis’ 1055 Bronx River Ave. in the Bronx.
“Who’s behind [Amazon] when guys build these huge, multilevel industrial buildings that can’t be successfully multi-tenant?” Metropolitan Realty Associates founder and CEO Joe Farkas asked. “If an Amazon deal went bad — I am sure there is going to be a deal that goes bad with Amazon — and it’s a whole building, with multiple levels, who is going to take that space? And that’s another reason why I stick to the simple, one-story strategy.”
DH Property Holdings President Dov Hertz, another panelist at Wednesday’s event, downplayed the notion that his tenant in Red Hook will soon be his competitor.
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DH Property Holdings is a leading real estate development, investment and asset management firm focusing on complex industrial distribution warehouses in dense, urban-core areas.
