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Amazon Increases Its Footprint Across San Diego in 2021

E-Commerce Giant Has Committed to More Than 4.7 Million SF Since 2019

By Joshua Ohl CoStar Analytics May 6, 2021 | 2:39 P.M.

Amazon is continuing to flex its e-commerce might across the San Diego industrial market in the second quarter, after signing its second significant lease here this year. The firm is rumored to have leased the 175,000-square-foot dis.tribute facility in the Carlsbad Raceway Business Park, citing building permits that bear the company's name filed with the City of Carlsbad. The lease deal is slated to commence at the end of this year. The facility delivered at the end of 2018 and has been vacant since. Roughly 90,000 households are located within five miles of the property.

The e-commerce giant extended its reach in the South County during the first quarter, when it signed a 191,000-square-foot lease in the city of Chula Vista, California, at the EastLake Distribution Center. That facility is located within five miles of almost 70,000 households. Amazon is scheduled to move into its space here mid-year. In nearby Otay Mesa, Amazon signed on for space at Atlanta-based Seefried Properties' 3.3 million-square-foot distribution center in development near the border. It is scheduled for delivery later this year.

This continues Amazon's aggressive growth in San Diego. Last year, Amazon signed five new leases across the region, at larger distribution centers including the newly delivered, 535,000-square-foot Vantage Point and the 140,000-square-foot RB Vista in Rancho Bernardo, as well as smaller, last-mile facilities in Kearny Mesa and along the Morena corridor.

As part of its expansion into San Diego, Amazon also increased its footprint of flex space at the Campus Pointe by Alexandria in the University Town Center submarket. This was the first space in the region for Amazon's engineering department when the company leased 85,000 square feet at the property in 2017. The expansion in 2020 tacked on an additional 45,000 square feet to its footprint there.

The increased demand in Amazon’s distribution footprint comes as the rise in online shopping appears to be here to stay. Consumer preferences for the ease with which retail goods can be ordered online has accelerated during the pandemic.

At the end of 2020, e-commerce sales accounted for 14% of retail sales, excluding food services, in the United States. That is up from 11.3% at the end of 2019, according to the U.S. Census Bureau. It reached a high of 16.1% in the second quarter of 2020, at the height of stay-at-home orders across the country.

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