- Amazon is closing a legacy Virginia facility after 15 years, reflecting a wider effort to modernize its fulfillment network and prioritize automation and delivery speed.
- The company is expanding its same-day delivery reach to 4K+ smaller markets, aiming to capture more of the grocery and retail sectors.
- Modern facilities are the new standard, with Amazon favoring newer buildings with taller ceilings, automation capabilities, and locations closer to customers.
Legacy Facility Makes Way For Newer Models
Amazon will close an 80,749 SF distribution center in Sterling, Virginia — one of its oldest — by early 2026, reports CoStar. The site, leased from Prologis for over 15 years, lacks the modern infrastructure Amazon now seeks: higher ceilings, larger doors, and automation systems essential for efficient fulfillment. While well-located near key highways, the building no longer aligns with the company’s logistics needs. Amazon said it has significantly grown its footprint in Virginia, now operating 14 fulfillment and sortation centers and 16 delivery stations across the region.
Modernization At The Core Of Amazon’s Strategy
This closure is part of Amazon’s broader plan to streamline and upgrade its US logistics network. After a pandemic-driven expansion, Amazon began consolidating its real estate in 2022. It started closing older sites and delaying new openings in markets such as California and New Jersey. The focus has since shifted toward regional networks and same-day delivery capabilities, which help reduce fuel costs and speed up order fulfillment. Newer warehouses tend to be less than three years old, feature ceiling heights above 36 feet, and are strategically located closer to growing population centers.
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Same-Day Delivery Push Drives Facility Upgrades
Amazon is rapidly scaling its same-day delivery infrastructure, aiming to reach over 4K small towns, cities, and rural areas by the end of 2025. In 2024, Amazon shipped over 9B same-day or next-day packages globally, a 29% increase from the previous year. The company also expanded its number of US same-day delivery sites by 60%. This growth is not just about speed, but also market share: Amazon is targeting the nearly $1T Americans still spend annually at physical retail stores, especially on groceries. To support this, it is upgrading existing buildings and constructing new ones with capabilities tailored for rapid fulfillment and perishables.
Trading Up Nationwide
Beyond Virginia, Amazon has been phasing out older facilities across the US. In North Reno, Nevada, the company closed a 2015-era center and is replacing it with a new same-day facility closer to the city’s core. In San Francisco, Amazon is vacating two aging warehouses, which Prologis plans to redevelop with modern logistics buildings. This trend follows a broader shift across the industrial sector, where tenants now favor state-of-the-art features over legacy space. Amazon’s evolving warehouse portfolio highlights its focus on faster delivery and greater automation. It’s also expanding into under-served regions while aligning real estate decisions with its long-term logistics strategy.
