Amazon getting into real estate? Or out?
Amazon is one of the most prominent office tenants in the country, so when the technology behemoth plans to shed space, landlords pay close attention. Yes, even in the Boston real estate market.
The company is looking to reduce its office vacancies, Business Insider reported, citing sources and an internal document. Amazon expects to save approximately $1.3 billion by cutting down on vacancies, which it intends to do by not renewing leases, terminating others early and ending the use of some floors.
Amazon’s office vacancy rate is 33.8 percent, according to Insider. That’s expected to drop to 25 percent this year and all the way down to 10 percent in the next three to five years. The vacancy level is attributed to the company’s slowing growth and layoffs; 160 jobs were cut this week in advertising alone.
A spokesperson for Amazon stated to news organizations that the company regularly reviews its real estate portfolio.
Amazon has also been pushing to relocate employees to central hubs, which would allow it to reduce space at non-essential locations. The company mandates employees to be in the office at least three days a week and has pressured remote employees to move closer to central offices.
More than 30,000 employees signed an internal petition pushing back against Amazon’s return-to-office policy, only for leadership to reject the petition.
Updated: Boston Real Estate Blog 2024
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Amazon getting into real estate? Or out?
Investors get nervous every time a certain Seattle-based e-commerce giant eyes a new market and this time Zillow is the victim of Wall Street’s Amazon anxiety.
A new placeholder web page on Amazon that says “Hire a Realtor” with an option to enter your zip code and “Coming Soon” below is prompting speculation that the company may be expanding into the real estate referral business — Zillow’s bread and butter.
If Amazon moves into realtor referrals, it will be competing with two of its neighbors: Zillow and Redfin. Connecting house hunters with agents is a crucial revenue source for both of the Seattle-area real estate companies.
I think I know who’ going to win this battle.
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