Login

Blockbuster Amazon deal adds to record industrial leasing year for Los Angeles

Retailer moves into Prologis building in City of Commerce
The 615,000-square-foot warehouse at 6100 Garfield Ave. in City of Commerce was the largest freestanding building constructed in the greater Los Angeles area in 10 years when it opened in 2014. (CoStar)
The 615,000-square-foot warehouse at 6100 Garfield Ave. in City of Commerce was the largest freestanding building constructed in the greater Los Angeles area in 10 years when it opened in 2014. (CoStar)
CoStar News
January 16, 2026 | 8:02 P.M.

Amazon's deal to fill a Prologis-owned building at the end of 2025 marked one of the largest deals of the year for both the e-commerce giant and Los Angeles.

The company signed for 615,000 square feet at 6100 Garfield Ave., City of Commerce, a 2014-built facility on 28 acres formerly occupied by the now‑closed 99 Cents Only Stores. It was the second‑largest industrial lease in greater Los Angeles in the past year.

It also helped send the region's deal volume to record levels, surpassing the peak set in 2021 when the COVID-19 pandemic prompted consumers to place a record number of delivery orders.

Amazon will move into a building previously occupied by now-defunct retailer 99 Cents Only. (CoStar)
Amazon will move into a building previously occupied by now-defunct retailer 99 Cents Only. (CoStar)

Tenants completed 3,500 new industrial leases totaling 42 million square feet across greater Los Angeles in 2025, pushing volume 5% above 2024 and slightly past 2021 levels, with e‑commerce, logistics and distribution users leading the pack, according to Jesse Gundersheim, CoStar’s senior director of market analytics for Los Angeles.

“The massive, dense population of Southern California will always be attractive to national distributors and last‑mile logistics operators," he said.

He added that the deal comes as Amazon reported 10% online sales growth in the third quarter of 2025.

Nationally, the Commerce deal is Amazon’s fifth‑largest new lease of 2025 and its biggest in the western U.S. The retailer also signed a lease for the 500,000‑square‑foot Easy Street Industrial Center in the Simi Valley, northwest of Los Angeles, a development set to wrap construction early this year.

The Amazon deal was bested by a 694,000‑square‑foot deal signed by U.S. Logistics last year at a Majestic Realty-owned warehouse at 171 Marcellin Drive in the City of Industry.

Amazon shuffles portfolio

Amazon’s latest leasing moves come as the company is overhauling its national logistics network, trading out older sites for newer facilities that can support faster delivery and more automation.

The shift reflects a broader push to tighten delivery times. Amazon is expanding its same‑day delivery network into thousands of smaller cities and rural areas and upgrading its grocery‑delivery infrastructure as it competes for a larger share of the roughly $1 trillion grocery market.

Those investments follow a period of consolidation that began in 2022, when Amazon closed or delayed dozens of facilities after pandemic‑era overexpansion.

article
5 Min Read
November 24, 2025 02:45 PM
This aging fulfillment center in Northern Virginia is spotlighting the online retailer's evolving strategy.
Randyl Drummer
Randyl Drummer

Social

Since then, it has adopted a regional fulfillment strategy that emphasizes newer, better‑located warehouses designed to reduce transport costs and keep inventory closer to customers.

Amazon’s real estate decisions increasingly hinge on building age, efficiency and the ability to accommodate automation.

The company has already announced similar closures in Nevada and the Bay Area as it replaces older long‑haul‑oriented sites with next‑generation, high‑spec logistics hubs.

IN THIS ARTICLE