Amazon sells a vacant office in the Bay Area to Dermody Properties

The Bay Area office facility owned by Amazon was sold. The corporation purportedly expanded throughout the epidemic, and this was recently acquired 16 months ago as part of a plan to buy real estate in major cities for future growth. Dermody Properties LLC purchased an empty office complex from Amazon. The 29-acre facility, according to a Bloomberg article, was situated in Milpitas, California. In October 2021, Amazon paid $123 million for the property. This abandoned office complex was built with the intention of becoming an Amazon location. Unfortunately, because of the current economic difficulties, the company is experiencing, the property is now empty. It was intended to be used for future facility expansion and a potential new warehouse. [caption id="" align="aligncenter" width="594"] Image credit- Tech Times[/caption] Although it has been reported that Amazon is losing money on the sale of the Metro Corporate Center, the ultimate selling price is still being debated and negotiated between the parties. By the end of April, the agreement will be finalized. The developer of commercial real estate in Reno, Nevada, is Dermody Properties. George Condon, a company partner, said that after the office complex is purchased, they will turn it into their own warehouse space. The corporation, he continued, is actively looking for tenants for its warehouses. According to Steve Kelly, a spokesperson for Amazon, the company has always evaluated its networks to make sure they meet the demands of the company, particularly during these difficult times. [caption id="" align="aligncenter" width="1200"] Image credit- DBT[/caption] Closing and selling a property that is not being used by the business is not surprising given the current state of the economy. For the past two years, one of the markets that have been impacted has been the Bay Area's old office. https://www.gadgetany.com/news/why-everybody-is-withdrawing-money-from-the-stock-market-and-investing-in-real-estate/   The office was initially intended to be a delivery location. But since the corporation bought the property 16 months ago, Amazon has had to deal with a number of issues, including new local restrictions and rising construction prices. According to reports, in addition to the recently sold property, Amazon opted to eliminate 261 jobs in the Bay Area by laying off 200 people. This was a part of the second phase of the company's major layoffs, which were announced in October 2022.