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  • Writer's picturechris

Is Amazon leading the way to construction de-escalation?

An article by Joe Gordon for Bisnow in San Francisco, discusses the state of the market in warehouse space, at least as far as it relates to Amazon. Much anecdotal discussion has been thrown around about Amazon’s massive construction and leasing of warehouse to support their delivery services over the past 2 years, one count is over 200M sf of space leased or built, mostly during the pandemic. During the same period, not surprisingly, prices for metal deck, bar joists, premanufactured buildings and precast have all skyrocketed, along with massive increases in lead times. The article notes that Amazon is pulling back due to reduced demand in their primary business, which one could hope would help bring the demand for these construction materials back to earth.

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