Hartford Business Journal

12 Hartford Business Journal • August 24, 2020 • www.HartfordBusiness.com By Joe Cooper jcooper@hartfordbusiness.com M any Connecticut towns and cities, including Hartford and East Hartford, in recent years were among hundreds of applicants that tried to lure e-commerce giant Amazon to build its second head- quarters in the state. But despite recruitment efforts from former Gov. Dannel P. Malloy and pre- decessor Gov. Ned Lamont, the state was not named on a short list of cities the internet retailer was considering for its $2.5 billion headquarters before northern Virginia was named the vic- tor in the Amazon "HQ2" sweepstakes. However, as Amazon continues its domination as the world's largest retailer, the Seattle-based company has made major investments across the Northeast, including in Con- necticut, where it launched several distribution sites this year. An analysis of the e-commerce juggernaut's presence in Connecti- cut shows that it currently occupies more than 3 million square feet in Windsor, North Haven, Cromwell, Stratford, Wallingford, Bristol, Orange and at Bradley International Airport in Windsor Locks. It also plans to oc- cupy another 1.1 million square feet at facilities in Windsor, Wallingford and Danbury in the next year. Already employing thou- sands of workers in Con- necticut, area real estate brokers say the company is eyeing additional locations in the eastern and western regions of the state as the coronavirus pandemic has accelerated the e-com- merce boom. Meanwhile, Amazon, which did not respond to requests for comment, is re- portedly in talks with Amer- ica's largest mall owner to convert former or current J.C. Penney and Sears stores into distribution hubs to deliver packages. Brokers say the deal could make sense for both Amazon and mall operator Simon Property Group as the e-commerce landscape shifts and many brick-and- mortar stores close their doors for good. "I think to take over these malls is a great use of those buildings," said Nicholas Morizio, Hartford presi- dent for property broker Colliers International. "That's a great need." Amazon, recently announcing the debut of its new 403,000-square-foot, large-item fulfillment center in Crom- well, said it's invested more than $2.1 billion in Connecticut over the last de- cade in real estate, cloud infrastructure and compensation for 8,500 full- and part-time employees. The company also estimated that its investments have contributed at least $600 million to the state's economy during that period. Brick-and-mortar retail impact Connecticut has steadily become a major landing spot for several new Amazon fulfillment and delivery sta- tions because it's centrally located in New England and has significantly cheaper rent prices compared to the nearby New York and Boston markets, according to bro- kers and economic develop- ment officials. Amazon recently said its growing presence helps speed up delivery times for both customers and the more than 17,500 indepen- dent authors and small- and medium-size businesses in Connecticut that sell on the company's website. But some have expressed concern that Amazon's growing presence in the state, in addition to the con- tinuing growth of online shopping, could stifle brick- E-commerce Hotspot Amazon's growing CT distribution footprint set to top 4 million square feet Amazon facilities in Connecticut Town Square feet Bristol 403,000 Cromwell 400,000 Danbury (under development) 147,000 Newington 40,000 North Haven 855,000 Orange 140,000 Stratford 200,000 Wallingford (under development) 83,754 Wallingford 173,000 Windsor (under development) 823,000 Windsor 1,200,000 Windsor Locks (BDL Pinnacle Logistics) 394,000 Total: 4,518,754 Source: HBJ analysis HBJ PHOTO | JOE COOPER Amazon's new 403,000-square-foot facility in Cromwell, at 120 County Line Dr., packs and ships large items including mattresses, kayaks, grills and exercise equipment.

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