May 3, 2022
Amazon growth warning hits shares of warehouse owners
A profit warning from Amazon on Thursday evening triggered steep share price falls, providing an indication of how much warehouse owners rely on the ecommerce group as a customer for space and a bellwether for sentiment. New York-listed Prologis, the biggest warehouse owner in the world with a market capitalisation of more than $110bn, has plunged more than 10 per cent since Friday morning. Mike Prew, an analyst at Jefferies, said in a note that Amazon's caution about online sales growth was tempering warehouse developers' optimism about the profits they could make from developing new space. Amazon accounted for a quarter of all new warehouse demand in the UK in 2020 and 2021 as it invested heavily in new capacity to capitalise on a jump in ecommerce sales during the pandemic, according to estate agency Savills. "We had a record first quarter by quite some way and Amazon was 3 per cent of it. There's a lot of demand in the market that isn't Amazon," he said.
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