The Latest CRE News from Lincoln Property Company Southeast

Amazon eyes third massive Georgia facility

According to the Atlanta Business Chronicle, Amazon is considering adding a third massive regional project near metro Atlanta in a little more than a year.

The online retail giant is seeking up to 750,000 square feet to add a new facility to its expanding logistics network and the project could employ about 1,000 people.

Recently Amazon said it was opening a fulfillment center in Jackson County and last year the company said it would also occupy a fulfillment center in the Braselton area. It is possible that the company is looking to cluster its centers in one area. For Amazon, it would make sense to co-locate with each location focusing on a specific function.

In Georgia, Amazon’s expansion reflects metro Atlanta’s population growth. The 10-county metro region added 78,300 residents between April of 2016 and this past April, according to the Atlanta Regional Commission.

 

In a Retail Storm, Strip Malls Provide Shelter

Open-air shopping centers are on the upswing. Shares of real-estate investment trusts that own and operate the broad category of open-air shopping center are up about 7 percent since June 30 after skidding in the first half of this year, according to The Wall Street Journal.

The open-air mall category comprises strip malls that do not have enclosed walkways linking stores, and power centers, which are open-air shopping centers that include anchor stores such as department stores and a few small tenants. It also encompasses community centers, which are neighborhood shopping centers that offer convenience-oriented stores.

Strip centers are less vulnerable to the retail storm, according to Mizuho Securities, because they have less exposure to apparel retailers and offer more affordable rents than mall landlords.

 

Mall landlords concede they are working harder to recruit tenants that are more in tune with customers’ tastes and are spending more time structuring leases that accommodate tenants’ demands, while remaining profitable.