With the advent of COVID demand, warehouse space occupied by Amazon.com increased by 36 percent from 275 million square feet at the end of 2020 to 374 million square feet one year later.

Recently Amazon announced that it would reduce projected growth consistent with demand for services.  Amazon apparently acquired more space than needed and it intends sub-leasing 10 million square feet during 2022 with the prospect of additional sub-leases in 2023.

This development places Amazon in competition with existing property owners and developers.  A major real estate company, CBRE Group projects that leasing space during the current year will attain 850 million square feet down from 1,000 million square feet in 2021.  It is expected that competitors of Amazon including FedEx and DHL will still support the lease market that is characterized by a current low vacancy rate. It is widely accepted that many tenants are requesting a renegotiation of lease terms.