Amazon Seeks Tenants for Unopened Metro Detroit Grocery Stores

Amazon hired a broker to find subtenants for several Amazon Fresh grocery stores in Metro Detroit. These buildings were constructed but sat empty. The Seattle company still pays rent on spaces it doesn't use.

Michael Dudash works at Rochester-based Creative Commercial Real Estate Inc. He's now marketing five retail spaces. The broker has worked with Amazon for over 20 years. A colleague contacted him about this assignment shortly after the New Year.

This happened after the e-commerce giant announced it would shut down all Amazon Go locations and Amazon Fresh stores last week. The company wants to focus on grocery delivery, Whole Foods Market, and a new supercenter concept instead. 

The five buildings measure between 39,505 and 44,152 square feet. They're spread across Troy, Roseville, Livonia, Plymouth, and Rochester Hills. Each has a lease running into the late 2030s. Troy's location at 662 E. Big Beaver Road? That lease expires in October 2037. The Gratiot Avenue site in Roseville runs through June 2039.

Dudash said companies have shown interest already. "I've had a couple tenants already reach out to me," Dudash said, accroding to The Detroit News. "One was a local family grocer, and the other is a national pickleball (company). You know how those are kind of hot."

These buildings sit in shopping centers that are mostly full. That makes them easier to lease. The existing construction helps potential tenants, too. They could open within six months to a year. 

Amazon wants to recover as much money as it can. Dudash pointed out the financial burden is serious—200,000 square feet under lease across just the five sites he represents. He might be adding more buildings in Michigan and Florida to his list.