Amazon Makes Huge Commitments Throughout State
Virginia's Industrial and Logistics (VIL) inventory consists of over 154 million square feet spread over three core markets. The Port of Virginia (POV), the sixth-largest container port in the United States, provides a convenient and efficient connection between the eastern regions of the United States and the global supply chain. Serving as a testament to the strength of Virginia's industrial market is the increasing presence of Amazon throughout all core markets. The e-commerce giant currently has 10 fulfilment and sortation centers as well as delivery stations throughout the state, and the company continues to expand its Virginia footprint.
Despite the COVID-19 pandemic disrupting the global supply chain, the Virginia Industrial Market has shown resilience over the past two quarters. Although activity has slowed as tenants evaluate the market before pursuing long term projects, deals are still moving. There continues to be growing demand for large requirements, and established users are not being deterred by the current economic climate. While there is a possibility of a softened market in the near term, the fundamentals are expected to remain stable.