Latest news with #warehouse space
Yahoo
18-07-2025
- Business
- Yahoo
Goldman Sachs And Barclays Join Forces To Fund A $395 Million Loan Backed By Amazon's Data Centers
Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Goldman Sachs (NYSE:GS) and Barclays (NYSE:BCS) have teamed up to issue a $395 million loan backed by a group of eleven Amazon distribution centers. The two banks jointly originated the debt, which will be bundled into a commercial mortgage-backed securities deal, CoStar News reports. Bond rating firm Moody's has already released an early analysis of the transaction, which is backed by approximately 1.55 million square feet of warehouse space, comprising a portfolio of single-tenant distribution centers with an average size of around 141,000 square feet. All the properties are leased solely to Amazon (NASDAQ:AMZN) and are co-owned by Stonemont Financial Group and Stonepeak Partners. Don't Miss: Named a TIME Best Invention and Backed by 5,000+ Users, Kara's Air-to-Water Pod Cuts Plastic and Costs — This AI-Powered Trading Platform Has 5,000+ Users, 27 Pending Patents, and a $43.97M Valuation — The Importance Of Last Mile Distribution The type of last-mile distribution hubs involved in this deal has become increasingly valuable to Amazon's supply chain, enabling the e-commerce giant to offer high-speed delivery options throughout the U.S. Amazon leases each of the properties, which have an average expiration term of 9.8 years, under separate agreements. Amazon has recently been aggressively expanding its industrial real estate footprint, adding both distribution centers and data centers to its portfolio to stay ahead of the growing demand for e-commerce and AI. Part Of Amazon's Aggressive Infrastructure Increase In April, Amazon announced that it was investing $4 billion in rural America to expand its delivery network. According to a study by Amazon and the University of Pennsylvania's Wharton School of Business, when Amazon opens a facility, the median household income in the county increases by $1,225 per year. Additionally, poverty rates decrease by an average of 3.3%. Trending: With Point, you can Amazon announced plans to invest at least $20 billion in Pennsylvania in early June, following its previous announcements of $10 billion for North Carolina and $5 billion for its new cloud infrastructure in Taiwan. The Growing Trend Of Infrastructure Securitization The deal underscores a growing trend of capital flowing into physical infrastructure and logistics assets through securitization, according to Reuters. Insurers like Prudential and MetLife (NYSE:MET) are deploying huge pools of capital into structured assets offering stable, higher-yield alternatives to government bonds. , Getting Creative To Circumvent Tightening Lending Standards Reuters reports that many banks significantly tightened lending standards in 2023, particularly affecting commercial and industrial loans. As alternatives, property owners increasingly turned to structured financing like CMBS. The Federal Reserve's Senior Loan Officer Opinion Survey for Q1 2025 reported, 'tighter lending standards and weaker demand for commercial and industrial loans to firms of all sizes,' marking the most significant tightening outside the pandemic period. Commercial real estate brokerage, JLL highlighted a growing trend for single-asset single-borrower transactions, which often back large-scale industrial and logistics assets. From January to August 2024, industrial deals accounted for over 33% of SASB volume, up from just 7% in 2023. This growth reflects lender and borrower confidence in financing prized logistics properties through CMBS Read Next: Warren Buffett once said, "If you don't find a way to make money while you sleep, you will work until you die." Here's , starting today. Image: Shutterstock This article Goldman Sachs And Barclays Join Forces To Fund A $395 Million Loan Backed By Amazon's Data Centers originally appeared on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Wall Street Journal
16-07-2025
- Business
- Wall Street Journal
Prologis Ramps Up Plans for New Warehouse Construction
The world's largest owner of industrial real estate says companies are leasing more custom-built warehouse space despite broader economic uncertainty. San Francisco-based Prologis on Wednesday said it logged more than $900 million in new development starts in the quarter ended June 30, up from $324 million in the same period a year earlier. About 65% of the new projects were leased to tenants before construction started.
