Amazon is Back — and It's Shopping for Warehouses Again

Amazon spent two years subletting warehouses and canceling deals — now it's back with a bigger budget and a wishlist for properties.

Jordan B. & Nina Dale
April 02, 2026

Together with

Good morning. Amazon spent two years subletting warehouses and canceling deals — now it's back with a bigger budget, a more specific wish list, and ambitions that stretch from port cities all the way to rural America.

Today’s issue is sponsored by PACE Loan Group — a smarter way to finance your commercial real estate project.

🎙️ Can’t miss episode: Ackman-Ziff’s Jordan Brustein and Andrew Rudy reveal how OZ deals are getting saved—and restructured—in today’s market.

CRE Trivia 🧠

What year did the first modern enclosed shopping mall open in the United States, and where was it located?

(Answer at the bottom of the newsletter)

Market Snapshot

S&P 500

GSPC

6,528.52

Pct Chg:
+2.91%

FTSE NAREIT

FNER

773.52

Pct Chg:
+1.28%

10Y Treasury

TNX

4.319%

Pct Chg:
-0.023

SOFR

30-DAY AVERAGE

3.65%

Pct Chg:
-0.00

*Data as of 4/1/2026 market close.

INDUSTRIAL EXPANSION

Amazon is Back — and It's Shopping for Warehouses Again

After a two-year retreat, Amazon is re-entering the industrial real estate market with a more deliberate strategy and a significantly larger appetite.

The numbers don't lie: Amazon is projected to expand its U.S. industrial footprint by 51M SF in 2026, up from 39M SF in 2025 — and brokers from Atlanta to Houston are confirming the activity firsthand. One supply chain consultant put it plainly: Amazon's 2026 requirements are 160% higher than they were in 2022.

From binge to hangover to back again: From 2019 to 2021, Amazon added 453M SF of global warehouse space — "spending like drunken sailors," as one industry observer put it. By 2023, the hangover had set in: canceled projects, nearly 100 facilities put up for sublease. Now, with e-commerce sales surging 5.3% YoY in Q4 and online retail up nearly 11% in January alone, the giant is back on the hunt.

This time, it's strategic: Amazon isn't just grabbing whatever has a loading dock. The focus is on high-ceiling, high-power modern facilities capable of supporting advanced automation — plus a deliberate buildout of cross-dock warehouses near ports to manage inbound inventory from China and other overseas suppliers.

The rural push is real: Amazon is spending $4B to grow its rural delivery network to 201 warehouses by year-end — a 200% increase in just three years. The last-mile buildout is moving well beyond the suburbs.

A new role in the supply chain: Perhaps the biggest shift: Amazon is positioning itself as a third-party distributor for Chinese retailers, warehousing and shipping goods not just to its own customers but to Walmart and Shopify shoppers as well. It's less online retailer, more logistics utility — paying $5/SF in warehouse rent where a traditional retailer might pay $80/SF at a storefront.

➥ THE TAKEAWAY

Big picture: The world's biggest warehouse tenant is back with a very specific list. Modern, high-power, port-close, and rural-ready. If your industrial product doesn't check those boxes, the most important lease comp of 2026 isn't coming your way.

TOGETHER WITH PACE LOAN GROUP

$100M C-PACE loan funds data center conversion

The data center boom needs energy, water, and energy-efficient infrastructure – a perfect fit for C-PACE’s flexible financing.

PACE Loan Group financed a 421,112-square-foot, four-story AI Campus owned by Patmos, a conversion from the Kansas City Star’s printing plant into 35 megawatts of power for high-density GPU, HPC, and AI infrastructure companies.

"Many of the conversion costs were eligible, and the long-duration capital is well aligned with Patmos’s business plan. Our funds complemented the borrower’s significant investment to create an efficient, turnkey AI data center in a city center,” said Rafi Golberstein, CEO and founder – PACE Loan Group.

*This is a paid advertisement. Please see the full disclosure at the bottom of the newsletter.

✍️ Editor’s Picks

Who’s actually lending? MBA rankings reveal that a small group of lenders dominated 2025 originations, showing who actually deployed capital in a still-cautious lending environment.
Coverage gaps: Hidden exposures threaten income and operations. Arcstone's blueprint outlines smarter coverage, rising risks, and tactics to keep multifamily portfolios protected. (sponsored)
Buying spree: Japanese investors are pouring billions into U.S. housing, betting on long-term demand and stability despite near-term market uncertainty.
Tax crackdown: NYC is intensifying enforcement against condo and co-op owners who improperly claim tax breaks, targeting widespread abuse of primary residence rules.
Commission clarity: Still tracking commissions manually? AscendixRE gives full visibility into deal economics without spreadsheets or guesswork. (sponsored)
Studio strain: Deutsche Bank has filed a $340M pre-foreclosure action against Kaufman Astoria Studios, signaling mounting distress even among prominent media assets.
Liquidity loosened: Proposed Fed reforms could free up bank liquidity, but economic uncertainty may limit how aggressively lenders deploy new capital.
Delinquency spike: CMBS delinquency rates surged in March 2026, reflecting growing stress across commercial real estate—especially in office and multifamily sectors.

🏘️ MULTIFAMILY

Yield compression: Senior housing cap rates compressed for a second straight year as strong demand and investor appetite continue to drive pricing higher.
Value flip: Bell Partners sold a South Florida apartment community to Maxx Properties, signaling continued investor interest in stabilized Sun Belt assets.
Build to rent: Southern Impression Homes and JLM Living are advancing construction on a 253-unit single-family rental development in Bloomingdale, Georgia.
Refi play: DivcoWest secured a $70M refinancing for a Denver multifamily property, highlighting ongoing lender support for well-performing assets.
Global buy: Brookfield acquired a $1.2B Madrid multifamily portfolio from Blackstone, underscoring sustained global capital flows into rental housing.
Luxury trade: Living Residential paid $116M for a 300-unit luxury community, reflecting confidence in high-end multifamily demand.
Mixed-use push: Morgan Group is planning a $68M mixed-use development in Irving, continuing the expansion of amenity-rich residential projects in Texas.

🏭 Industrial

Digital gold: Digital Realty closed a $3.3B fund to expand its data center footprint, signaling sustained investor demand for digital infrastructure assets.
Desert demand: Phoenix’s industrial market remains resilient with strong leasing activity, though rising supply is beginning to temper rent growth.
Solar sale: A New Jersey industrial property with on-site solar is being marketed for sale, highlighting growing investor interest in energy-efficient logistics assets.
Houston expansion: Constellation Real Estate Partners is advancing a new industrial project in Houston, capitalizing on continued demand for logistics space.
Doubles in value: Blackstone acquired a South Florida warehouse complex from Clarion Partners, reinforcing institutional appetite for industrial assets in high-growth markets.

🏬 RETAIL

Luxury pricing: A Gucci-leased retail property on Palm Beach’s Worth Avenue traded for $43M, underscoring continued investor demand for trophy retail in prime locations.
Pharmacy pivot: CVS is expanding its store footprint again after years of closures, signaling renewed confidence in brick-and-mortar retail strategy.
Retail rebound: Acadia Realty acquired a $43M luxury retail asset in Palm Beach, doubling down on high-end, high-traffic shopping corridors.
Turn it around? Target’s turnaround strategy is gaining traction, with improving foot traffic and performance suggesting early signs of recovery.

🏢 OFFICE

Conversion push: The federal government is offloading a D.C. office building for residential conversion, reflecting growing momentum behind adaptive reuse.

Discount listing: An Evanston office property has hit the market at a steep discount, highlighting ongoing valuation pressures in the office sector.
Office exit: Pfizer is closing its Oyster Point offices in South San Francisco, adding to the wave of corporate space reductions weighing on the market.

🏨 HOSPITALITY

Deal of the day: Blackstone acquired another Northern California hotel, continuing its strategic expansion in the hospitality sector.
Uptown build: A new $50M hotel is planned in Dallas’ Uptown district, signaling ongoing confidence in urban hospitality demand.

📈 CHART OF THE DAY

CRE Trivia (Answer)🧠

1956 — Southdale Center in Edina, Minnesota, designed by architect Victor Gruen. It became the blueprint for suburban retail development across the country for the next half century.