Amazon Aims to Sublet, End Warehouse Leases as Online Sales Cool
- Company wants to shed at least 10 million square feet of space
- Amazon spooked investors last month after saying it overbuilt
Amazon shipping containers outside a warehouse in Redlands, California.
Photographer: Roger Kisby/BloombergAmazon.com Inc., stuck with too much warehouse capacity now that the surge in pandemic-era shopping has faded, is looking to sublet at least 10 million square feet of space and could vacate even more by ending leases with landlords, according to people familiar with the situation.
The excess capacity includes warehouses in New York, New Jersey, Southern California and Atlanta, said the people, who requested anonymity because they’re not authorized to speak about the deals. The surfeit of space could far exceed 10 million square feet, two of the people said, with one saying it could be triple that. Another person close to the deliberations said a final estimate on the square footage to be vacated hasn’t been reached and that the figure remains in flux.