Is Amazon Taking Over the Industrial Sector of Commercial Real Estate?

An interesting topic of conversation around the commercial real estate community in Omaha and the region. This article by Duke Long sparked interest around our law office.

Biggest Threat to Your Industrial Space? Your Customer!


What threat?

There is no threat to your industrial space, or so you think.

If there was and there is not, then how could it possibly be your customer?

It’s pretty easy to see if you just step back and take a look at one of the biggest industrial tenants out there.

Yep, you guessed it Amazon.

You hear about them all the time do you not.

They are using drones to drop packages in somebody’s yard on 60 minutes. They want to create stores that are not stores but are stores or not or something like that.

You hear about them devastating retailers all over the world with competitive pricing, fast, accurate shipping and an inventory list that has no end.

And you will have to admit you’ve had a few of those brown boxes with the black logo end up on your doorstep.

So, what you say, “I get it they have logistics advantage. Yea, they are busting it to own the last mile.”


What’s happening at the point of origin for all of those products hanging from the drones or bouncing around in Big Brown Trucks?

A couple of forklifts driving around, a couple of people with manifests checking and sorting and a big slogan painted on the wall that says. Work Hard. Have Fun. Make History.

That’s basically it, right?

Ok, maybe a few automated metal rolling line things and a computer here or there.

It’s a warehouse.

No, it’s not. It’s Basecamp

Basecamp for taking over the world.

Who Usually Wins?

How many people/companies wake up every morning with the general idea of domination in business?

Most just think about a single business. Not ALL of business.

At the risk of getting all metaphor on you who usually wins?

The ones with money big money, resources beyond money, strategy and execution of that strategy, vision, logistics, technology, innovation.

But in your mind, that’s not your customer at all. They’re not Amazon.

There just some people making widgets and shipping them to customers here, there and wherever.

Your Competition.

Don’t tell them this but those customers are now and will sooner than later become your competition.


Simple, by being better at doing what you think you do now.

And that is………Manage the physical asset they work from.

Their basecamp.

Who in the world today manages industrial space better than anyone?

Who’s number 1?

It’s Amazon, right?

Who’s number 2?

It’s you?

It’s all of industrial commercial real estate?

Are you sure?

What advantage do they have over Amazon?


What happens when all the rest of the companies using Amazons “logistics management ” model get ramped up and on board?

What has happened to the retail industry?

What has happened to the retail commercial real estate business?

Nothing? Bullshit!

So, of course, nothing will happen to industrial real estate at all?

Of course not.

You got this.

Hell, you control the space the tenants and the deals right.

How many warehouses can Amazon buy if they want to?

Now, this is no bullshit Google this. I’m serious. Amazon applied for a patent to float warehouses above cities. Or click on the link instead just for fun.

Crazy and ridiculous? Sure, that’s not even realistic. How in the hell can they even do that?

Let me ask you something. Are you going to own and control the floating warehouses? Of course not, that’s not going to happen. Don’t worry.

How about the one’s on the ground right now? You have those handled no problem.

Are you sure?

You see it right?

Not worried?

Sure as shit I would be.

Without a single doubt the………..

Biggest Threat to Your Industrial Space? Your Customer!

+1 I’m not trying to be right I am just trying to state what is just so obvious.

+1+1 Don’t even talk about lease wording or transactions


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