By Ajay Madhvani, MAI – AM Valuation Services, PLLC | Real Estate Daily News
Amazon will soon be opening a fulfillment center in the Port of Tucson. This will have both positive and negative impacts on the local economy. Ship times will be reduced and about 1,500jobs will be directly created, but does this come at a cost? For initial insight, we analyzed a report in Economic Policy Institute titled Unfulfilled Promises prepared by Janelle Jones and Ben Zipperer on February 1, 2018. According to this report, the warehousing jobs increase but overall there is no noticeable difference in net jobs. This is largely due to lost jobs in the retail industry. This brings us to the next question, which retailers and businesses will be the most impacted?
Articles referring to more specific metropolitan areas such as San Bernadino and Cleveland report mixed feelings on Amazon fulfillment centers. Both metropolitan areas welcome the new jobs, nearby fast food restaurants saw increased business, and an old mall was repurposed into a warehouse in Cleveland. In both scenarios, Amazon made their presence known by reviving a previously declining area, filling old warehouses and a shopping mall that was vacant. The downside are that most jobs are low paying and/or seasonal, and there is a decline in existing retailers.
