{"id":1004801734,"date":"2026-07-06T03:32:21","date_gmt":"2026-07-06T11:32:21","guid":{"rendered":"https:\/\/www.commercialsearch.com\/news\/?p=1004801734"},"modified":"2026-07-06T03:38:51","modified_gmt":"2026-07-06T11:38:51","slug":"what-amazons-supply-chain-push-means-for-industrial","status":"publish","type":"post","link":"https:\/\/www.commercialsearch.com\/news\/what-amazons-supply-chain-push-means-for-industrial\/","title":{"rendered":"What Amazon\u2019s Supply-Chain Push Means for Industrial"},"content":{"rendered":"\n
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This article first appeared in the CPE Sneak Peek Newsletter. Subscribe now<\/a> for early access to exclusive content, in-depth analysis and key trends!<\/em><\/p>\n<\/blockquote>\n\n\n

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Logistics hubs such as Northern New Jersey could be well-positioned to benefit from Amazon’s Supply Chain Services due to their proximity to ports, transportation infrastructure and major consumer markets, according to Greek.
Image courtesy of Greek Development<\/em><\/figcaption><\/figure><\/div>\n\n\n

Amazon’s launch of Amazon Supply Chain Services is prompting industrial real estate professionals to reconsider how companies may approach warehouse networks, distribution operations and third-party logistics providers in the years ahead.<\/p>\n\n\n\n

By allowing companies to tap into its freight, warehousing, fulfillment and delivery network, Amazon is introducing a platform at a time when industrial trends<\/a> are increasingly focused on maximizing efficiency rather than aggressively expanding warehouse footprints.<\/p>\n\n\n\n

\u201cASCS gives companies access to a much larger and shared network, potentially decreasing the number and\/or size of dedicated warehouse space they need,\u201d Michelle Comerford, industrial & supply chain practice leader at Biggins Lacy Shapiro & Co., told Commercial Property Executive<\/em>.<\/p>\n\n\n\n

Nevertheless, while ASCS may redirect some industrial demand into existing Amazon networks, widespread adoption could require additional facilities to support growing capacity needs, Comerford explained.<\/p>\n\n\n\n

Who will feel the effects? <\/h2>\n\n\n\n

As Amazon expands its presence in third-party logistics, the impact is likely to be felt unevenly across the sector. The launch comes just as more companies are turning to outsourced logistics providers rather than managing distribution operations in-house, creating favorable conditions for 3PL services overall.<\/p>\n\n\n

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Greek believes the service launch could put pressure on smaller 3PLs that do not have the financial resources to compete at the same scale.
Image courtesy of Greek Development <\/em><\/figcaption><\/figure><\/div>\n\n\n

David Greek, managing partner at Greek Development, said that Amazon is entering the market at a time when demand for third-party logistics is growing, but since Amazon is such a large company this could increase the competition in the market among providers.<\/p>\n\n\n\n

\u201cAmazon coming in I don’t think changes the competitive landscape drastically,\u201d Greek said. \u201cIt’s another player, albeit one that is very large and well-capitalized, and already has the largest domestic logistics network.\u201d<\/p>\n\n\n\n

Through the increase in competition, Greek believes larger 3PLs are better equipped to compete, while smaller regional operators may face greater challenges. He noted that consolidation has long been a feature of the fragmented 3PL sector, with smaller providers often being acquired by larger companies. The addition of another large, well-capitalized competitor could accelerate that trend.<\/p>\n\n\n\n

\u201cThose smaller 3PLs are going to struggle to compete against this, because they just don’t have the capital or the network to do it,\u201d he said.<\/p>\n\n\n\n

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The effects could spread beyond third-party logistics providers. Comerford expects the service to influence the way occupiers evaluate warehouse space and distribution networks. She does not expect the service to reduce demand for warehouse or industrial space overall.<\/p>\n\n\n\n

However, she said some firms may reevaluate the number, size and location of their facilities as they gain access to Amazon’s broader logistics network.<\/p>\n\n\n\n

\u201cIf ASCS becomes a logical solution for some, then companies will certainly need to change and adjust how they are thinking about their dedicated warehouse facilities and where those are best located,\u201d she said.<\/p>\n\n\n\n

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