Looks like Amazon hq2 is NYC and VA

Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes

I just read it looks like HQ2 is going to NYC and Virginia. NYC for talent attraction and VA/DC for politics is my guess. Thoughts?

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Russell BrazilBusiness Member

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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes

Originally posted by @Aaron Taylor:

From a pure financial standpoint when you can pick anywhere in the US to build, those two areas seem like odd choices. It's kind of like having the whole US as an option to buy rental property and then buying in the most expensive areas. Obviously it must be non-financially driven to some degree. But what do I know, lol.

I also think that huge headquarters may start to go by the wayside in the future. I live in the midwest, and I've noticed that companies in expensive areas are starting to recruit people to work from home remotely rather than pay someone locally. Like a person in Kansas might be 25% to 50% cheaper than someone in Cali doing the same job. I think that trend is going to continue in the future as companies shrink their offices and hire remotely. I know of two engineers in the last month that were recruited to work at home from now on.

DC makes perfect sense to me as a DC area resident. Cheap housing when measured against income. Sure while we are the 5th or 6th most expensive market, we also make the most money by far making housing very affordable. Housing prices are only about 4 times our income, placing us outside the top 20 most expensive markets when measured against income.

We have the highest percentage of bachelors, masters, and doctoral level degrees by far. Sonhighly educated work force. We also have a culture built around work and careers here.

Biggest tech workforce outside the bay area.

We have a large amazon presence already, and the backbone of the entire internet is here in DC with 70% of the entire internets traffic driving through our data centers.

We have a great public transportation system. We have 3 major airports. We have some of the best school systems in the country.

Bezos owns the Post and the most expensive house in DC...and of course easy access for lobbying. Marriott, Northrop Grumman and many other companies have certainly found it beneficial to be here for the purposes of lobbying

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Eric GiovannucciBusiness Member
Investor · Boise, ID · Member since 2014 · 172 posts · 99 votes
7y
Is that what they're building southeast of the Richmond,VA area?
[email protected]
3 Reply
Joseph Salegna
Massapequa Park, NY · Member since 2017 · 62 posts · 48 votes
7y
I think they are looking at Arlington, VA and Long Island City, NY
4 Reply
Matt R.
OP
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
Originally posted by @Eric Giovannucci:
Is that what they're building southeast of the Richmond,VA area?
I read Crystal City for VA and Queens for NYC. Is Crystal City Richmond? Long Island City is Queens that much I know.
2 Reply
Joseph Salegna
Massapequa Park, NY · Member since 2017 · 62 posts · 48 votes
7y
From what I read Crystal City is in Arlington but I could be wrong. LIC has been building for years. historically been a lot of traffic congestion in that area going from Manhattan to the other boroughs to access the airports. Curious to see how that works out. Also LaGuardia airport is not equipped to handle any of that and JFK is further away and traffic can be a disaster.
4 Reply
Eric GiovannucciBusiness Member
Investor · Boise, ID · Member since 2014 · 172 posts · 99 votes
7y
Time to start looking at Virginia
[email protected]
6 Reply
Eric GiovannucciBusiness Member
Investor · Boise, ID · Member since 2014 · 172 posts · 99 votes
7y
And no, Crystal City is right outside of Fort Myer, across the river from DC.
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1 Reply
Matt R.
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Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
Btw, I predicted both of these for top tier as far as both seemed obvious choices when compared. Especially NYC stood out like a sore thumb for the top company on the planet. VA for all the political shake downs. I did not predict both at the sametime though.
7 Reply
Aaron Hunt
All Over, USA · Member since 2017 · 689 posts · 756 votes
7y
Crsytal City is flush with new condos/development. It was suppressing the current condo rental market a bit based on our experience. Already was a very expensive area. Barely seemed to get touched by the recession compared to other areas so appreciation has been weak too. There were tons of short sales/foreclosures at the time. We got lucky and picked a few condos at the bottom of the recession and the appreciation over the last 8-9 yrs is equivalent to the appreciation in 2 years of investing in smaller ”Tier 2” cities. Hopefully this should be a catalyst and allow the marlet to pick up steam now!
4 Reply
Steve K.
Honolulu, HI · Member since 2017 · 247 posts · 315 votes
7y
Originally posted by @Eric Giovannucci:

And no, Crystal City is right outside of Fort Myer, across the river from DC.
next to Reagan international airport
0 Reply
David Zheng
Investor · Saint Louis, MO · Member since 2016 · 970 posts · 1k+ votes
7y
It would be cool if someone has been tracking house prices in these places from last month to now
4 Reply
Matt R.
OP
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
Originally posted by @David Zheng:

It would be cool if someone has been tracking house prices in these places from last month to now
Yeah, that would be interesting. I am not sure this has much effect for NYC outside of the walkable stuff to Hq2. That place is already a serious madhouse for RE I think.
0 Reply
Joseph Salegna
Massapequa Park, NY · Member since 2017 · 62 posts · 48 votes
7y
rental prices in LIC has been high for the last few years and apartments in that area are expensive. Manhattan is insanely expensive and year ago Brooklyn went though a revitalization and spread to Queens i'd guess about 5 years ago.
3 Reply
Joseph Salegna
Massapequa Park, NY · Member since 2017 · 62 posts · 48 votes
7y
Sorry the last post meant to read the brooklyn revitalized years ago
0 Reply
David Friedman
Property Manager · San Bernardino, CA · Member since 2014 · 473 posts · 238 votes
7y
They considered the City of San Bernardino for HQ2. Sadly, I do not think the city council members and mayor at the time put on a good enough presentation for them to consider it.
San Bernardino has some of the world's best warehouse and logistics infrastructure including it's own airport. Cheap land and central location to the rest of the U.S. led to huge growth in new warehouse development. Amazon has 3 huge warehouses already in San Bernardino.
Hopefully we will be considered again for HQ3.
1 Reply
Aaron Taylor
Olathe, KS · Member since 2018 · 148 posts · 207 votes
7y
From a pure financial standpoint when you can pick anywhere in the US to build, those two areas seem like odd choices. It's kind of like having the whole US as an option to buy rental property and then buying in the most expensive areas. Obviously it must be non-financially driven to some degree. But what do I know, lol.
I also think that huge headquarters may start to go by the wayside in the future. I live in the midwest, and I've noticed that companies in expensive areas are starting to recruit people to work from home remotely rather than pay someone locally. Like a person in Kansas might be 25% to 50% cheaper than someone in Cali doing the same job. I think that trend is going to continue in the future as companies shrink their offices and hire remotely. I know of two engineers in the last month that were recruited to work at home from now on.
3 Reply
Matt R.
OP
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
Originally posted by @David Friedman:
They considered the City of San Bernardino for HQ2. Sadly, I do not think the city council members and mayor at the time put on a good enough presentation for them to consider it.
San Bernardino has some of the world's best warehouse and logistics infrastructure including it's own airport. Cheap land and central location to the rest of the U.S. led to huge growth in new warehouse development. Amazon has 3 huge warehouses already in San Bernardino.
Hopefully we will be considered again for HQ3.
San Berdo will have plenty of growth even without hq2 or at least a ton of growth is predicted for many logistical reasons.
0 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
@Matt R. not a done deal yet, this is one of those "unnamed sources say" stories. You can get an unnamed source to say just about anything, so I never take it as gospel. The source said it will be split and indicated Crystal City, VA is a done deal and the second site is not finalized, but NYC is high on the list.
It is entirely possible the leak was intentional to help with negotiations on the city they really want. Or the leak could be someone in Crystal City looking for some investor action, haha. If this was decided, Amazon and the cities selected would announce it. That means it is not final.
@Russell Brazil predicted DC in the early BP polling, so looks like he is in the lead.
3 Reply
Matt R.
OP
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
@Joe Splitrock right on, yes this is still unconfirmed but apparently the cat is out of the bag. Yes Russell I think was correct in that original prediction as were a couple others and it just made political sense when you consider Bill Gates/Microsoft got hosed when they did not locate some stuff politically speaking. I think Bill let him know how much that cost microsoft and Amazon realized they want to be in that game immediately.
2 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y
Originally posted by @Aaron Taylor:

From a pure financial standpoint when you can pick anywhere in the US to build, those two areas seem like odd choices. It's kind of like having the whole US as an option to buy rental property and then buying in the most expensive areas. Obviously it must be non-financially driven to some degree. But what do I know, lol.
I also think that huge headquarters may start to go by the wayside in the future. I live in the midwest, and I've noticed that companies in expensive areas are starting to recruit people to work from home remotely rather than pay someone locally. Like a person in Kansas might be 25% to 50% cheaper than someone in Cali doing the same job. I think that trend is going to continue in the future as companies shrink their offices and hire remotely. I know of two engineers in the last month that were recruited to work at home from now on.
DC makes perfect sense to me as a DC area resident. Cheap housing when measured against income. Sure while we are the 5th or 6th most expensive market, we also make the most money by far making housing very affordable. Housing prices are only about 4 times our income, placing us outside the top 20 most expensive markets when measured against income.
We have the highest percentage of bachelors, masters, and doctoral level degrees by far. Sonhighly educated work force. We also have a culture built around work and careers here.
Biggest tech workforce outside the bay area.
We have a large amazon presence already, and the backbone of the entire internet is here in DC with 70% of the entire internets traffic driving through our data centers.
We have a great public transportation system. We have 3 major airports. We have some of the best school systems in the country.
Bezos owns the Post and the most expensive house in DC...and of course easy access for lobbying. Marriott, Northrop Grumman and many other companies have certainly found it beneficial to be here for the purposes of lobbying
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
9 Reply
David Friedman
Property Manager · San Bernardino, CA · Member since 2014 · 473 posts · 238 votes
7y
@Matt R. Do you invest in San Bernardino? I am always looking to network with like-minded individuals.
2 Reply
Matt R.
OP
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
7y
Originally posted by @David Friedman:

@Matt R. Do you invest in San Bernardino? I am always looking to network with like-minded individuals.
I have not, although I did look at some Crestline stuff awhile back and I think the SB area is solid and poised for all the longer term outlooks. I guess like minded that way.
0 Reply
Loretta Gray
Real Estate Broker · Alexandria, VA · Member since 2018 · 89 posts · 30 votes
7y
Originally posted by @Russell Brazil:

Originally posted by @Aaron Taylor:
From a pure financial standpoint when you can pick anywhere in the US to build, those two areas seem like odd choices. It's kind of like having the whole US as an option to buy rental property and then buying in the most expensive areas. Obviously it must be non-financially driven to some degree. But what do I know, lol.
I also think that huge headquarters may start to go by the wayside in the future. I live in the midwest, and I've noticed that companies in expensive areas are starting to recruit people to work from home remotely rather than pay someone locally. Like a person in Kansas might be 25% to 50% cheaper than someone in Cali doing the same job. I think that trend is going to continue in the future as companies shrink their offices and hire remotely. I know of two engineers in the last month that were recruited to work at home from now on. DC makes perfect sense to me as a DC area resident. Cheap housing when measured against income. Sure while we are the 5th or 6th most expensive market, we also make the most money by far making housing very affordable. Housing prices are only about 4 times our income, placing us outside the top 20 most expensive markets when measured against income.
We have the highest percentage of bachelors, masters, and doctoral level degrees by far. Sonhighly educated work force. We also have a culture built around work and careers here.
Biggest tech workforce outside the bay area.
We have a large amazon presence already, and the backbone of the entire internet is here in DC with 70% of the entire internets traffic driving through our data centers.
We have a great public transportation system. We have 3 major airports. We have some of the best school systems in the country.
Bezos owns the Post and the most expensive house in DC...and of course easy access for lobbying. Marriott, Northrop Grumman and many other companies have certainly found it beneficial to be here for the purposes of lobbying
Exactly my thoughts too RB
2 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
@Russell Brazil add to your comments the major amount of spending that the Federal Government represents. Amazon is aggressively going after Federal Data Center business as they shift to the cloud, which Amazon has made major investments in.
Of course Bezos has other interests with the Federal Government beyond Amazon. His Blue Origin rocket program is pushing for more Air Force and NASA contracts.
So if you can influence the government and sell to the government, it is a perfect combination.
2 Reply
Russell BrazilBusiness Member
Moderator
Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
7y
Originally posted by @Joe Splitrock:

@Russell Brazil add to your comments the major amount of spending that the Federal Government represents. Amazon is aggressively going after Federal Data Center business as they shift to the cloud, which Amazon has made major investments in.
Of course Bezos has other interests with the Federal Government beyond Amazon. His Blue Origin rocket program is pushing for more Air Force and NASA contracts.
So if you can influence the government and sell to the government, it is a perfect combination.
Yeah I think they were just bidding on DoD's data contract. Cant remember if they got it or not or if its still up in the air.
[email protected]301-893-4635 Podcast Guest on Show #192
District Invest Group545 Reviews
Website View Page
1 Reply
Joe SplitrockPro Member
Moderator
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
7y
Am I the only one that just realized this?
7 Reply

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