Amazon buys Pierce County industrial properties for $220M

Amazon purchased a former Ashley Furniture megawarehouse in unincorporated Pierce County for around $220 million on Friday.

It marks one of the county's most expensive real estate transactions, according to property records.

The sale, first reported by The News Tribune in Tacoma, included two megawarehouses with a combined 1.1 million square feet at 20623 34th Ave. E. in Spanaway, purchased for around $198 million. Amazon also scooped up about 20 acres of nearby undeveloped land for nearly $22 million.

The Seattle-based e-commerce giant plans to open an operations facility at the site, where Amazon workers will pick, pack and ship customer orders, according to Amazon spokesperson Farah Jad.

The site adds to around 40 Amazon warehouses in Washington and will provide "faster delivery and great service to local customers," Jad said.

Amazon's purchase comes as supply outpaces demand for the area's industrial sites, leaving an increasing number of them empty. The Puget Sound industrial market's vacancy rate reached a record high of 11.5% in the first quarter, up from 9.2% a year ago, according to Savills research. The rate was as low at 4% in 2022.

The region's vacancies have steadily increased since 2023 as demand for industrial property has softened amid rising interest rates, said Todd Clarke of Kidder Mathews, who represented Ashley Furniture in the transaction. The Trump administration's tariffs enacted over the last year have also raised costs for businesses, which has contributed to the industrial market's slowdown, he added.

The Spanaway site was on the market for six months before Amazon's purchase, which isn't unusually long, Clarke said.

"Ashley was pleased with the outcome of working with Amazon and will be reducing their footprint and remaining in the area," he said.

The Wisconsin-based company originally purchased the large swaths of Spanaway land in 2018 and 2019 to receive inventory from the nearby Port of Tacoma. The distribution center was designed to process home-delivery orders and pickup for store purchases made at Ashley Furniture stores in the region, according to The News Tribune.

Ashley representatives did not immediately respond to a request for comment.

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This story was originally published April 30, 2026 at 6:38 AM.