After an unprecedented decade-long buying spree, there are signs that Amazon has reached the critical mass that they desire and is putting some of its real estate portfolio on the market. Bloomberg reports that Amazon is abandoning or sub-letting about 30 million square feet of their 374 million square foot portfolio.

Lease rates have doubled and tripled in the California market over the last three years, leaving many providers to have to make a choice to downsize or relocate their facilities.

If some stability in pricing is achieved,  customers should be looking to see if their providers are willing or able to start investing in new equipment, software, and personnel to begin closing the competitive gap with the larger players.

For 3PL providers, it would be a welcome sign if vacancies rose back to over 2%, allowing them to manage the other areas of their operation without worrying about how many months they had left on their lease term.