Amazon Shake Up of Retail Shopping Center Real Estate

Posted on June 23, 2017

Amazon’s recent announcement that it will purchase Whole Foods Markets for $13.7 billion sent shockwaves through the grocery and real estate industries. Just a few weeks earlier, retail and real estate professional who gathered at the International Council of Shopping Center’s (ICSC) annual convention expressed cautious optimism while lamenting the impact that behemoth e-tailers like Amazon are having on brick-and-mortar businesses.

The merger brings to Amazon more than 450 physical stores in the U.S., which represent new channels for the company to promote and sell its products and services. It also brings Amazon one step closer to expanding its footprint and carrying out its grocery delivery-service business model, AmazonFresh, on a national level. The impact of this deal on consumers will likely translate to lower prices, improved technology and more conveniences in their shopping experiences. For shopping center owners, investors and tenants, the merger may effectively increase foot traffic as consumers seek out shopping “experiences” that combine retail, dining and lifestyle features.

While it is too soon to know for sure how the merger will play out in the long term, commercial real estate buyers and sellers who own or are looking to buy into shopping centers with Whole Foods Markets should obtain guidance from qualified professional to weigh the pros and cons of their actions.

The professionals with Orion Real Estate Group work with investors, developers, property owners and brokers through all phases of real estate transactions, from strategic planning and analysis to financing, negotiation, property management and disposition. For more information, call (305) 278-8400 or email info@orionmiami.com.