Amazon has reportedly settled on the locations for its HQ2 project, with New York City and Northern Virginia winning the bidding process. The online retail giant had initially planned to create one facility in a single city, before deciding mid-way through the selection to expand into two areas. 238 communities around the nation submitted proposals to Amazon.
Amazon is expected to make an official announcement later this week. New York City and Northern Virginia beat other top contenders like Nashville Tennessee, Newark New Jersey, Los Angeles California, and Miami Florida.
What Amazon’s Expansion Means for the Winning Bidders
The competition to host Amazon’s new HQ was fierce.
Initially the company expected to make investment of up to $5 billion into the winning city, with more than 50,000 jobs created. It is unknown whether this figure will now be changed or if it will be split evenly between New York City and Northern Virginia. It has been speculated that many of the jobs created could be worth more than $100,000 per year, although Amazon has not offered any confirmation of this.
The injection of capital, construction activity, and long-term job growth will be welcomed in both locations. Service companies will likely also receive huge boosts from the presence of large Amazon campuses.
PayScale, a leading compensation specialist, released data earlier this month that ranked Northern Virginia and New York City as having the second and third best talent pools out of HQ2 contenders. Boston topped the list but was not a late-stage contender.
Real Estate Values are Likely to Increase Around New Amazon Facilities
As has been seen in Seattle, real estate values are likely to rise around the new Amazon facilities. Price growth could occur in both commercial and residential markets. External service providers and other ancillary businesses will likely begin to sprout around Amazon’s new HQ2 projects, which could further increase the value of commercial real estate and attract professionals and families for the residential market.
Amazon’s expansion is big news for investors, job seekers, and real estate investors in both New York and Northern Virginia. This will be one of the largest corporate expansion projects in recent memory, and the economic impact will likely be felt well into the next ten years.
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