Here in the real estate investment trust (REIT) world, we all know Amazon (AMZN) as the disruptor it is.

That word “disruptor” sounds like an automatic negative. And for many a retail REIT, especially the mall category, it’s hard to see it any other way.

Then again, cell tower, data center, and industrial REITs – the “tech trifecta” – have been booming thanks to the online revolution Amazon has… created? … inspired? … taken advantage of?

It’s hard to know the precise word to use in this case. All we know is that Amazon is one enormous force to be reckoned with in every single department imaginable.

Go to the bottom of Amazon.com, and you’ll see industry after industry it’s already involved in, including:

• Publishing
• Music streaming
• Marketing
• Pharmaceutical distribution
• Cloud storage
• Home security
• Fashion
• Robotics
• Space exploration…

That’s the shortlist, and it’s always looking to take over something else, almost always through online means. There was its Whole Foods purchase back in 2017, of course. That was an eye-widening big deal to most of us.

Many of us wondered why the always growing, always encroaching, always revolutionizing tech giant cared about anything so… grounded.

There are plenty of answers to that question, but I’m going to skip over them in this blog post to bring you Amazon’s latest physical-space news. Because, as The Wall Street Journal reported on Wednesday:

“[The] online shopping pioneer wants a larger retail presence to sell clothing and household items and facilitate exchanges.”

In person. Through face-to-face, building-specific transactions. We’re talking about traditional retail here at its purest.

Is your mind blown? That’s understandable. Take a moment or two (or 15) to digest that declaration.

The World According to REITs

Perhaps Amazon is doing that because its Chinese rival, Alibaba (BABA) is directly challenging it these days. But I think there’s more to it considering Amazon’s 2017 moves into physical retail.

Honestly, if you want my opinion, I’d say Amazon wants to rule the world. And while the world may be intensely more digital than it once was, it’s still ultimately a physical place.

There’s no getting around that fact. So, recognizing that, Amazon wants to adopt the “if you can’t beat ‘em, join ‘em” mentality.

Just with a twist. Because it’s only joining to infiltrate and conquer.

In other words, I hardly see this as being a reprieve for most mall REITs. It’s just one more attack in the end.

Unless, of course, Amazon decides to rent out space within these properties. Then, it will be one tech-giant-sized win for them.

Oh, and note that I said “most mall REITs” will be affected. Not all. Companies like Simon Property Group (SPG) and our first entry down below still remain standouts even now.

• Tanger Factory Outlet Centers (SKT) appointed Virginie Julie Schena as senior vice president of people and culture. In that role, she’ll lead the retailer’s “people strategy, vision, planning, and execution.”
• BRT Apartments (BRT) purchased the remaining 41.9% of its joint venture interest in the 402-unit multifamily Bells Bluff in West Nashville, Tennessee for $28 million. It now owns the entire asset. And it signed an agreement to do the same with the last 10% interest in Crestmont at Thornblade, a 266-unit property in Greenville, South Carolina, for $1.6 million.
• Gladstone Land (LAND) signed a leaseback agreement for two lemon and orange groves in South Florida for $5.2 million with a 12-year contract.

As for the chart below, I’m not even going to say a word.

(Source: The Daily REITBeat)