Monday, June 3, 2019

Largest Private Real-Estate Transaction Ever -- Warehouse Network -- June 3, 2019

This tells me all I need to know about the future of:
  • e-commerce
  • Amazon
  • Target
  • Wal-Mart
  • USPS
  • UPS
  • FedEx
From The Wall Street Journal:


Data points:
  • buyer: Blackstone Group
  • seller: Singapore-based GLP
  • deal: $18.7 billion --let's just call it $20 billion
  • deal: 180-million-square-foot portfolio
  • record: largest private real-estate transaction ever
  • impact: a big bet on the continued explosion of e-commerce
  • outbid: Prologis, Inc was outbid
  • price per square foot of warehouse? $103/square foot -- amazing -- that's just about what one would expect -- $100/square foot
An average Walmart store is 100,000 square feet.

180 million square feet / 100,000 square feet = 1,800 Walmart stores (average size).  Walmart operated about 4,800 stores in the US in 2019. Another source suggested Walmart operated close to 6,400 stores around the world.

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