Amazon has landed some big airport real estate.
The tech giant has snapped up three properties just south of Denver International Airport for a combined $96 million.
The deal includes a 625,000-square-foot warehouse and adjacent land to the south and east.
“I can confirm that we have purchased this tract of land and the accompanying building on it,” an Amazon spokeswoman said in an email. “Additional work is needed at the facility and those plans are in the very early stages.”
The industrial building — big enough to house nearly 11 football fields — went for $86.1 million, or $138 a foot. It was sold by Indianapolis-based industrial developer Ambrose Property Group. The warehouse has 40-foot ceilings, nearly 300 parking spaces for cars and almost 200 spaces for trailers. The building has 92 docks and four drive-in doors.
Amazon also purchased land to the south and east for a combined $10.2 million, but did not respond to a question about its plans there.
The properties are situated at the southeast corner of Powhaton Road and 64th Avenue in Adams County.
“It’s really just to keep up with demand of last-mile delivery,” said Aviva Sonenreich, managing broker at industrial-minded brokerage and landlord Warehouse Hotline. “Thankfully, Denver has become that port that all of these Fortune 500 companies want to use to deliver product as fast and efficiently as possible.”
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The land south of DIA has attracted much attention from developers, due to its easy access to E-470, Interstate 70 and the airport itself. Development to the north and east of the airport is coming, but will take more time, she said, as it’s expected that the airport will add a fourth concourse sometime in the future.
Sonenreich said the downstream effects are being felt by smaller, more local tenants of hers.
“The little guy is struggling right now. We have a lot of tenants that are falling out, specifically in the pocket of 7,500 square feet to 15,000 square feet. These guys are struggling. Why would I buy something from them when I can buy something from Amazon for cheaper and have it at my door tomorrow?
“People just have to be more creative, and leave getting your hangers and diapers to Amazon and your more niche specific product to the small businesses locally.”
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