By Joshua Burd
Amazon has long been known for having a profound impact on the bricks-and-mortar retail business. But as it turns out, that’s only one piece of the story of how the e-commerce powerhouse is transforming commercial real estate.
New Jersey is poised to feel that impact as much as any other state in the country.
The company’s fast-growing footprint in the state’s industrial market has been well-documented since 2013. But Amazon has now captivated the world of corporate real estate and office development. For municipalities nationwide, the news that it was seeking a second headquarters location suddenly cast a light on whether their office markets could accommodate such a project. In Newark, it galvanized developers who would normally compete for a deal to join forces with city and state officials to submit their bid, in a seemingly unprecedented strategy that they felt would put their best foot forward.
All this comes in a year in which Amazon acquired Whole Foods Market for $13.7 billion, gaining more than 400 strategic bricks-and mortar locations, including 18 in New Jersey and counting. Not to mention that the company has quietly (by comparison) inked a partnership with some of the country’s largest apartment owners to install its high-tech package lockers at their properties, which could include dozens of buildings and thousands of units in the Garden State.
There’s nothing to suggest that the Seattle-based tech giant plans on slowing down. In the stories that follow, we’ll detail how the company’s expansion will continue to influence all segments of commercial real estate in New Jersey.