Amazon selling Bay area offices to unwind COVID expansion
Amazon property is located in Milpitas, California
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E-commerce giant Amazon is reportedly going to offload an office complex it has in the Bay Area of Northern California.
The nearly 29-acre site is located in Milpitas, a city between Fremont and San Jose.
Amazon bought the property for over $120 million in 2021 during the second year of the COVID-19 pandemic, according to Bloomberg, which first reported the news Thursday.
Amazon spokesperson Steve Kelly told FOX Business Friday the company is "always evaluating our network to make sure it fits our business needs."
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This picture taken July 4, 2022, shows the logo of Amazon displayed at the Amazon Amagasaki Fulfillment Center in Amagasaki, Hyogo prefecture. (Kazuhiro Nogi/AFP via Getty Images) / Getty Images)
"As part of this effort, we’ve made the decision to explore selling the Metro Corporate Center site," he said. "We’re happy to remain part of the local community and will continue to deliver for customers from our two delivery stations in Milpitas."
Bloomberg reported the buyer of the empty complex will be developer Dermody Properties, which plans to make it a warehouse.
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George Condon, the West Region partner for Dermody Properties, told FOX Business the property was under contract with an anticipated close date in April.
He said the building "will be one of only eight modern, Class-A warehouses larger than 400,000 square feet serving the Bay Area."
An Amazon building in Bretigny-sur-Orge near Paris, France, Dec. 7, 2021. (REUTERS/Gonzalo Fuentes / Reuters Photos)
Amazon has also opened new sites in January in Sioux Falls, South Dakota, and another in Papillion, Nebraska, according to local reports.
An Amazon building (AP Photo/Bebeto Matthews, File / AP Newsroom)
In November, a same-day shipping facility for Amazon also reportedly opened in Northern California.
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In late October, Amazon said it generated $127.1 billion in net sales for the third quarter, a 15% increase from the same three-month period the prior year. The company’s quarterly net income was $2.9 billion, dropping nearly 9% year-over-year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 202.61 | -8.87 | -4.19% |
Amazon shares were trading at roughly $102 Friday afternoon, up over 19% from the start of 2023 but down nearly 29% over the past year.
