Amazon Pursues Multi-Story San Francisco Industrial Project

A few months after Prologis advanced its plans for a multi-story industrial project in San Francisco, Amazon followed suit with a similar development.

The San Francisco Planning Department will hold an environmental review for a 710,000-square-foot, three-story project next week, as first reported by the San Francisco Business Times. This marks a key milestone in the approval process of Amazon’s proposal.

The company acquired the 6-acre site in 2020 for $202 million from waste management firm Recology. Two years later, the Board of Supervisors introduced additional authorization requirements for parcel delivery facilities, even where zoning allows for such warehouses. The changes were enshrined in 2024.

This property would allow for speedier deliveries within San Francisco, as many packages are dispatched from Amazon warehouses outside the city, according to San Francisco Business Times.

Located at 900 7th St., the proposed development could rise more than 2 miles from downtown San Francisco, proximate to a Caltrain station and Interstate 80. The site where Prologis plans to build its multi-story industrial park is about 3 miles away.

Demand for Amazon delivery processing is set to rise as the company shifts investments to its online grocery stores instead, pivoting away from brick-and-mortar retail outlets with the shuttering of more than 2 million square feet of retail space across the nation.

The firm also seeks to bolster its logistics real estate portfolio, seeking to fund up to $15 billion in warehouse and distribution sites. Notably, this also includes multi-story fulfillment centers, though plans center mostly around last-mile delivery hubs.

Bay Area industrial deliveries plunge, vacancy remains stable

The Bay Area’s industrial pipeline comprised 3.6 million square feet of space underway in December, accounting for 1.2 percent of stock, 50 basis points below the national average, according to a recent Yardi Matrix report.

Industrial completions clocked in at more than 1.7 million square feet in 2025, marking a 65.1 percent annual drop and the weakest year in more than a decade, Yardi Matrix shows. The metro’s vacancy rate stood at 7.9 percent in December, 130 basis points below the national average, while its industrial rent of $14.66 per square foot was 65.2 percent above the U.S. figure.