Amazon Nearing HQ2 Decision? Real Estate Investment Impact Already Taking ShapeBy Liz Dominguez We're nearing the end of 2018 and the search is still on for the location of Amazon's second headquarters, which is said to bring as many as 50,000 jobs and $5 billion in investments over the next two decades. The search for HQ2 has been a year-long affair thus far, encompassing a wide-net search across North America that has been whittled down to a list of top 20 contenders. And with hardly a word from Amazon over the summer, activity has started back up in recent months, as America's largest online marketplace begins to re-visit some locations, while leaving others seemingly ignored.
The overall consensus? Amazon seems to be singling out larger city locations, perhaps a clue that HQ2 needs an already-established urban ecosystem that provides easy commuting, a network of skilled tech employees and the support elements HQ2 needs in order to flourish as the base in Seattle has. The latest visits? According to the Wall Street Journal, Amazon has again stopped by New York City; Newark, N.J.; Chicago; Miami and Washington, D.C. Meanwhile, other locations, such as Raleigh, N.C., haven't received word from Amazon in months. These recent visits are sparking a flurry of investor activity. Already, investors have begun raising funds in anticipation of Amazon's decision—looking to grab up property in a location that is set to bring in tech job growth and with it, a rush of out-of-towners—in search of gainful employment with one of America's most influential conglomerates—looking for housing. Investors are placing bets on what they think will be the winning city, but they're also using Amazon's preliminary research as a basis for smart investing across the nation. For example, Bryan Copley, co-founder of CityBldr, a Seattle-based startup, is raising $500 million in order to fund purchases in Amazon's chosen city, as well as Seattle (which hosts Amazon's headquarters) and L.A. (which made the Top 20 short list), states a Wall Street Journal article. The biggest help to investors? Qualifying cities have been providing Amazon with a slew of important market information in order to assist the company in their hunt for the perfect HQ2 location. These real estate participants are looking directly at properties suggested to be fit for Amazon's second headquarters, as well as investment opportunities in the surrounding areas, which will likely see a ripple effect should the nearby location be chosen for Amazon's venture. While these investment moves have largely landed on the commercial side of real estate, as Amazon gets closer to a decision, residential properties within commuting distance of the new headquarters will surely be picked off the market at a rapid pace, hiking up prices and creating a new Amazon market of sorts in which real estate plays by different rules than it used to. Liz Dominguez is RISMedia's associate content editor. |