Amazon’s Industrial Comeback: How the E-Commerce Giant is Reshaping Warehouse Demand in 2025

By: Nick Schlanger – Director of Research Services, NAI Hiffman

After a brief slowdown in leasing activity in 2022 and 2023, Amazon is back in full force in the industrial real estate market. According to Green Street’s latest Industrial Sector Update, the e-commerce giant signed 31 million square feet of new leases in 2024, marking a significant jump from 19 MSF in 2023—and even surpassing its pre-pandemic leasing average of 22 MSF in 2019.

This surge in leasing signals Amazon’s renewed focus on expanding its logistics network, optimizing warehouse operations, and securing large-scale fulfillment and cross-dock facilities to support growing e-commerce demand.

Why is Amazon Expanding Again?
Several factors are driving Amazon’s aggressive return to the industrial leasing market:

E-Commerce Growth is Back
After a post-pandemic cooldown, e-commerce accelerated in Q4 2024, growing 9.4% year-over-year. Consumers are spending more online, and with that comes a higher demand for same-day and next-day shipping, which requires more strategically located warehouses to move products efficiently.

A Shift Toward High-Efficiency Warehouses
Amazon has been re-balancing its logistics footprint, moving away from speculative leasing and focusing on core distribution hubs. The new strategy prioritizes:
– Larger fulfillment centers that can handle higher order volumes.
– Inbound cross-dock facilities that streamline inventory distribution to regional hubs.
– Specialized facilities for returns processing, seasonal inventory, and grocery distribution (Amazon Fresh, Whole Foods).

A New Focus on Cross-Dock and Fulfillment Centers
Instead of leasing smaller last-mile delivery stations, Amazon is betting on larger, high-throughput warehouses that can manage bulk shipments before redistributing goods to regional centers. This shift aligns with Amazon’s ongoing efforts to improve efficiency and reduce logistics costs.

Source: Green Street

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Amazon’s Long-Term Industrial Strategy
As Amazon continues its expansion into 2025 and beyond, expect these key trends to shape its industrial footprint:

More Expansion into Secondary Markets
While Amazon has focused on top-tier logistics hubs in 2024, the company is likely to target secondary markets such as Atlanta, Chicago, and other major Midwest hubs in 2025.

A Push for Multi-Purpose Facilities
Amazon is moving beyond standard fulfillment centers, integrating reverse logistics (returns processing) and cold storage facilities into its network. This supports Amazon Fresh, Whole Foods, and evolving consumer demands.

Competition for Industrial Space Will Tighten
With Amazon back in the game, demand for high-quality industrial space is expected to rise. This could lead to higher rents and lower vacancy rates particularly in markets with limited warehouse supply.

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Final Thoughts
Amazon’s return to the industrial real estate market is a strong signal of confidence in e-commerce growth and warehouse demand. With 31 million square feet leased in 2024, the company is once again a dominant force in logistics.

NAI Hiffman offers industrial brokerage services with a Chicagoland focus and experience in closing deals nationwide to accommodate the anticipated increase in e-commerce and warehouse demand. Our commercial real estate professionals offer products and services that meet and exceed the expectations of our clients. Click the link below for our current listings:

https://hiffman.com/nai-hiffman/properties/

About Hiffman National: 

Based in the Chicago area, with an additional five regional hubs and 30 satellite offices, Hiffman National provides superior property management, project services and accounting services to a diverse portfolio including office, medical office, retail and industrial properties nationally. The firm’s comprehensive property management platform and attentive approach to service contributes to client NOI and has helped the firm to more than double in size in five years. Hiffman National is an award-winning company with more than 250 employees strategically located throughout North America.

About NAI Hiffman:  

NAI Hiffman is one of the largest independent commercial real estate services firms in the US, with a primary focus on metropolitan Chicago, and part of the NAI Global network. We provide institutional and private leasing, property management, tenant representation, capital markets, project services, research, and marketing services for owners and occupiers of commercial real estate. To meet our clients’ growing needs outside of our exclusive NAI Hiffman territory, we launched Hiffman National, our dedicated property solutions division, which provides property management, project services, and property accounting services across the country. NAI Hiffman | Hiffman National is and award winning company headquartered in suburban Chicago, with more than 250 employees strategically located throughout North America.