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Repair Windows errors before they cause bigger problemsFix Now →Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Amazon was reported to be selling its vacant Metro Corporate Center in Milpitas, California, to Dermody Properties, which planned to convert the four-building office campus into warehouse space. The January 27, 2023 report said the sale was expected to close by the end of April, but the sources available do not confirm that it closed or that the conversion happened.
What was Amazon selling?
The property was Metro Corporate Center, a 12-hectare, four-building office complex in Milpitas, in California’s Bay Area. It was vacant when the sale was reported in January 2023. The Business Times, republishing Bloomberg reporting, described Dermody Properties as the buyer. CoStar’s contemporaneous report also identified the campus and Dermody as buyer.
Why was Amazon selling the site?
Amazon did not give a property-specific reason beyond its broader review of its operating network. Spokesperson Steve Kelly said, “We’re always evaluating our network to make sure it fits our business needs.” He said the company had decided to explore selling the Metro Corporate Center site, while remaining part of the local community and continuing deliveries from its two Milpitas delivery stations. The statement was reported by The Business Times on January 27, 2023.
How much did Amazon pay, and what was the sale price?
Amazon paid US$123 million for the property in October 2021, according to the January 2023 report. That is the earlier purchase price, not the price of the reported sale to Dermody.
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The final sale price was not disclosed. At the time of the report, the price was still being negotiated. The article attributed the expectation that Amazon would take a loss to an unnamed person familiar with the terms; it did not establish a completed sale price or a confirmed loss. It is therefore not possible to calculate the outcome from the reported figures. The Business Times/Bloomberg report.
What did Dermody plan to do with the campus?
Dermody planned to convert the office site to warehouse space. Partner George Condon said the firm was looking for warehouse tenants. The plan was an announced intention, not confirmation that the conversion was completed or that tenants were secured. The January 2023 reporting said the sale was expected to close by the end of April 2023; the sources cited here do not verify the closing or any later development. The Business Times/Bloomberg report.
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What does the report say about Bay Area office vacancies?
The January 27, 2023 article said nearly one-fifth of the Bay Area office market was vacant, citing a CBRE fourth-quarter report. It did not specify the year for that quarter or link the underlying CBRE report. Treat the figure as context reported in January 2023, not as a current vacancy rate. The Business Times/Bloomberg report.
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Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
