HOUSTON – AmazonFresh is preparing to locate a grocery logistics operation in Houston warehouse space as it gears up for a major foray into grocery delivery in Space City.
The e-commerce giant is expected to occupy more than 100,000 SF of warehouse space in the Fallbrook Pines Business Park near the intersection of Beltway 8 and Highway 249 in northwest Houston, people in the real estate community say. The business park, located on Fallbrook Drive, was developed by Trammell Crow and Clarion Partners. No official announcement has been released from Amazon.
In a key part of its grocery quest, Amazon’s recently offered $13.7 billion to buy Whole Foods Market, which has 466 stores. The acquisition will expand Amazon’s “last-mile” distribution network and urban retailing capabilities.
Still, Amazon will have to obtain a lot more refrigerated warehouse space to establish a comprehensive grocery distribution network nationwide. Right now, there is not enough existing warehouses in America to contain the coming e-commerce boom.
Houston’s warehouse market has a low 5.1 percent vacancy rate, according to a second-quarter report by JLL. As Houston’s population grows, the demand for warehouses for consumer goods has expanded. JLL reports seven new warehouse distribution facilities over 400,000 SF each will be completed in Houston in 2017.