Amazon has scooped up some major airport real estate.
The tech giant has purchased three properties just south of Denver International Airport for a total of $96 million.
The deal includes a 60,000 square meter warehouse and adjacent land to the south and east.
“I can confirm that we have purchased this land and the associated building on it,” an Amazon spokeswoman said in an email. “Additional work is required at the facility and these plans are at a very early stage.”
The industrial building – large enough to house almost eleven football fields – cost $86.1 million, or $138 per foot. It was sold by Indianapolis-based industrial developer Ambrose Property Group. The warehouse has 40-foot ceilings, nearly 300 parking spaces for cars and nearly 200 spaces for trailers. The building has 92 docks and four drive-in doors.
Amazon also bought land in the south and east for a combined $10.2 million, but did not respond to a question about its plans there.
The homes are located on the southeast corner of Powhaton Road and 64th Avenue in Adams County.
“It’s really just to keep up with demand for last-mile deliveries,” said Aviva Sonenreich, managing broker at industrial-focused brokerage and landlord Warehouse Hotline. “Fortunately, Denver has become the gateway that all these Fortune 500 companies want to use to deliver products as quickly and efficiently as possible.”
The land south of DIA has attracted a lot of attention from developers, due to its easy access to E-470, Interstate 70 and the airport itself. Development north and east of the airport is coming, but will take more time, she said, as the airport is expected to add a fourth concourse sometime in the future.
Sonenreich said the downstream effects are being felt by smaller, more local tenants of hers.
“The little guy is having a hard time at the moment. We have a lot of tenants dropping out, especially in the 7,500 square foot to 15,000 square foot portfolio. These guys are having a hard time. Why would I buy something from them when I can buy something cheaper from Amazon and have it delivered to my house tomorrow?
“People just need to be more creative and leave the buying of your hangers and diapers to Amazon and your more niche-specific product to the small businesses on the ground.”
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