Thursday, March 28, 2024
-Advertisement-
Reimagining Public Sector Analytics
Reimagining Public Sector Analytics
HomeNewsOpinionJeff Bezos jumps from ecommerce to brick and mortar: Here's why

Jeff Bezos jumps from ecommerce to brick and mortar: Here’s why

Follow Tech Observer on Google News
Google News

The buzz about is that his jump from ecommerce to brick and mortar with the may be the first step of additional real estate-related deals. There is no question that is a disruptive force for brick and mortar retailers and owners of retail real estate. A force less discussed is Amazon's current and potential impact across the real estate landscape.

Industrial

Outside of retail, the ecommerce giant's most obvious impact has been on the industrial real estate sector. Amazon's success in ecommerce and distribution, as well as the success of its peers, has driven strong returns for industrial real estate investors. According to Bloomberg, Amazon is the top occupier of industrial space in the U.S. with 102 million square feet in 258 facilities. Rising consumer expectations for same day and next day delivery could also necessitate more localized real estate demand. This “last mile” demand could drive additional industrial leasing in smaller footprints in the future.

Retail

The last mile challenge has historically constrained the growth of the online grocery business. Amazon's acquisition of Whole Foods Markets in 2017 was an attempt to gain a broader footprint in more communities and a sign of Amazon's intention to disrupt grocery retail.

Amazon has also begun testing more brick and mortar retail locations through several concepts. Book stores, Amazon Go, and Amazon 4-star stores. The company's disruption of retail also has had an interesting effect as some malls are shuttering with plans to develop more residential while other more innovative retailers better meet consumer needs through an omnichannel approach.

Residential

Online residential real estate brokerages are one of the fastest growing startups according to a recent report by Fundera. Amazon could help people buy and sell their homes with offerings including “For Sale By Amazon” signs.

Healthcare

CNBC reports that Amazon's senior healthcare leader, Taha Kass-Hunt, spoke recently at a conference where he indicated his team has seen potential in developing for “prediction and natural language understanding.”

In December, Becker's confirmed Amazon had hired renowned pharmacist Jason Tzau to improve the company's healthcare programs and service. CNBC reported in May that Amazon had built a team in its Alexa division to determine how the device may be useful in healthcare. With Amazon's second headquarters in Arlington, VA, don't be surprised if new healthcare and pharmacy initiatives are part of their blueprint.

While it is still too early to realize the full implications of Amazon's healthcare investments for healthcare real estate investors, Bezos is a disruptor. His long term vision could include more industries such as pharmacy and physician services.

As a technology giant, the future of healthcare could be the biggest upside with Amazon's next move. One thing is for sure, Bezos and his teams are in the process of planning for the first half of 2024. With the sheer size of Amazon, there are bound to be real estate winners and losers.

The author is a real estate investor and CEO of The Parking REIT. Views are personal.

Get the day's headlines from Tech Observer straight in your inbox

By subscribing you agree to our Privacy Policy, T&C and consent to receive newsletters and other important communications.
Michael Shustek
Michael Shustek
Michael Shustek is an author, thought leader and real estate investor. He is CEO of The Parking REIT
- Advertisement -
Reimagining Public Sector Analytics
Reimagining Public Sector Analytics
- Advertisement -Veeam
- Advertisement -Reimagining Public Sector Analytics
- Advertisement -ESDS SAP Hana

Subscribe to our Newsletter

83000+ Industry Leaders read it everyday

By subscribing you agree to our Privacy Policy, T&C and consent to receive newsletters and other important communications.
- Advertisement -

How AI power struggle opens up new frontier in global geopolitics

The far-reaching influence AI has on information processing, national security, military operations, the economy, and strategic decision-making is set to reshape the geopolitical landscape and redefine the power dynamics between nations.

RELATED ARTICLES