Looking for an industrial site with lots of truck parking? You could be in luck if real estate assets owned by the trucking company Yellow come on the market.
The company filed for Chapter 11 bankruptcy on Aug. 6, and the shutdown is expected to put hundreds of industrial properties up for sale or lease, according to CoStar Group’s August 2023 real estate data update.
“Even though most of Yellow’s properties were built before 1985, one key advantage is that they offer abundant truck parking, which is in short supply in major U.S. markets,” CoStar noted.
With truck terminals in most major U.S. cities, Yellow or its subsidiaries have “at least seven facilities” in each of New York, Chicago, and Los Angeles.
In total, CoStar tracks more than nine million SF of industrial space that is either owned or leased by Yellow or its subsidiaries in more than 240 U.S. cities. Yellow’s 2022 annual report refers to more than 300 properties across North America.
While Yellow’s bankruptcy may increase the supply of industrial space, Amazon may be ready to do the opposite. Each month from May through July, Amazon put 600,000 SF of warehouse space up for lease, CoStar noted. However, CoStar believes Amazon’s strong second quarter earnings report suggests that strategy could change.
“The company may be returning to a more offensive strategy when it comes to growing its distribution space,” CoStar commented. It cited the second quarter’s 9% boost to Amazon’s net sales from online stores and third-party seller services compared to 2Q 2022, as well as Amazon’s plans to double the number of same-day delivery facilities it operates.