Amazon Confirms Long Island City and Crystal City

48 Replies

It is confirmed Amazon chose Long Island City and Crystal City as number one and two for new headquarters. Let's track prices in those markets to see what happens.

Interesting development. Thanks for Columbus can stop holding its breath...

It is interesting, it will add 25,000 jobs in New York and the Washington DC area. They also added a third site in Nashville with 5000 jobs. I would love to hear the terms of these deals.

@Brandon Sturgill they sure kept people on the hook long enough!

Well Id been saying for the past year DC seemed obvious to me. Statistically with 3 of the top 20 named locations by Amazon, that seemed even more reinforcing.

@Russell Brazil any champagne bottles in your office today or are you busy raising prices on all your listings?

And expect Apple with their east coast headquarters to scoot right in and gobble up one of the other sites in the DC area that lost out. They will have 20,000 employees there.

Originally posted by @Joe Splitrock :

@Russell Brazil any champagne bottles in your office today or are you busy raising prices on all your listings?

 Nah, we dont really care. It affects the homeowners a lot more. Whether I sell a condo in Crystal Coty for $550k or $600k wouldnt affect how much I make that much.

I do have a Crystal City condo coming up to list soon though, and we were purposefully waiting til HQ2 was announced.

@Joe Splitrock I don't know the Long Island area too well but I do know Arlington, VA. (Crystal City neighborhood) already has an expensive market in terms of rental properties, the cheapest thing you can get there is a 1 bedroom condo in the high $300k's and HOA dues in the $300 a month range, Single family homes start in the $700k range in average neighborhoods. I think the surrounding areas will see better opportunities along the various Metro lines in neighborhoods like Alexandria, Huntington, Falls Church, etc. I'm no expert but @Russell Brazil knows the DMV area very well as it can get tricky for OOS investors not knowing the ebbs and flows of the various neighborhoods.

It should also be noted that the big builders are in various stages of developing 3,400 for rent units across the street from and surrounding the Pentagon City mall, these units sit between the mall, Crystal drive, and Jefferson Davis Hwy. These are all for rent high-rise towers, leases are expensive so getting a few miles outside of this area you may see some opportunity.    

@Ray Johnson that's been the trend for most of the markets in/around DC. Arlington has traditionally been more expensive than Alexandria despite the fact that the metro misses most of the neighborhoods in the heart of the County. It will be interesting to see how this shakes out.

I think the Washington, DC area was an obvious and great choice! The Long Island City was a little surprising to me considering all NYC Metro issues. The rental rates in Brooklyn are SKY HIGH as well so I'm wondering how it will play out for new people moving there. 

Originally posted by @Ray Johnson :

@Russell Brazil I'm assuming the nicer neighborhoods prices are much higher and heading into the millions?

 There are perfectly nice neighborhoods in the mid $400s plus that will be likely landing spots for Amazon Employees in south Arlington, Alexandria, Fairfax, Rockville, North Potomac.

I think the more well paid employees in sort of that $700k per year range are going to pool in Arlington, Mclean, Potomac, Bethesda. And those will be in the $1.6-5 million price range.  But I dont think thats going to be the vast majority of their employees by any means.

I expect a lot of their employees are going to be in the $80-300k salary range, so thats going to largely put them in the $400-$1 million property range. (Metro area median price point is $500k)

I imagine a distribution of employees somewhere around 30% on the Maryland side of the border, 25% on the DC side and 45% on the Virginia side.  DC and Arlington will absorb most of the younger people.  Then the people with families will pool in the areas with good school districts. Falls Church, part of Arlington, part of Alexandria, Fairfax, Springfield, Rockville, Bethesda, North Potomac. (West side of 355 in Maryland, except where the Walter Johnson district crosses east over 355)

I had someone from out of state inquiring about whether Amazon would have an effect in Ward 7 and 8 in DC. I cant imagine more than a 100 or so people ending up over there...which gives me a sense that out of state people are just going to throw money at properties here without any sense of where people will live and why.

Originally posted by @Ray Johnson :

@Joe Splitrock I don't know the Long Island area too well but I do know Arlington, VA.

I see a lot of people online saying it's in Long Island (which is Nassau and Suffolk county, in the suburbs).  It's in Long Island City, which is a small neighborhood in Queens NYC.  Seems like LIC and Crystal City both had underutilized commercial space which made it attractive.  

Also, I would've bet money that DMV are would win since 3 of the top 20 bids were in this area and Bezos owns a home here. When a big company relocates it's headquarters, it's often based on where the new CEO lives more than any other consideration. I think NYC makes better sense on all factors except housing prices but maybe that's why he split the baby with VA.

Originally posted by @Jaron Walling :

I think the Washington, DC area was an obvious and great choice! The Long Island City was a little surprising to me considering all NYC Metro issues. The rental rates in Brooklyn are SKY HIGH as well so I'm wondering how it will play out for new people moving there. 

It seems to me the NYC location was due to the high quantity of talented work force already in the area. They don't need to recruit people to relocate. Also the existing infrastructure can handle the quantity of people. I am not sure the exact area population, but let's say 10 million. Those 25K jobs are a quarter percent population, which is rounding error at best. 

Plus Bezos needs his own sky scraper. Every world dominating billionaire has a tower in a big city. Don't you watch the movies? Haha.

@Russell Brazil   That's so true! Because of the low purchase price points in Ward 7 and 8, I can see OOS investors buying in neighborhoods like Congress Heights, Barry Farms, and Deanwood expecting the HQ2 masses to show up only to be disappointed. 

I think for investors, the Nashville operation center with 5000 jobs may be the big news out of this announcement. It is still an affordable market that continues to attract good jobs.

@Joe Splitrock I agree on your prospective of Nashville! That's a rental rate increase for anyone's portfolio down there. I've heard great things about the city but haven't visited since I was a kid. 

Huge win for Nashville! It has definitely peaked the interest of the investors we work with here in the area. With the average expected salary of these corporate jobs being around 150K, it will surely benefit an already great market. 

As far as LIC is concerned it’s going to be more interesting to track housing prices/rents across the entire metro area. It’s very common for people to commute an hour or more to jobs in NYC and a lot of those people could wind up choosing to live in places like Nassau County and north eastern NJ. It’s a win for the entire region and should help bolster some of the outlying areas as well. Guess we’ll see!

@Joe Splitrock Being a resident here I beg to differ, the infrastructure is 100% not ready to handle the 25k people coming in. The N Q 7 train is packed as it is, sometimes waiting 2 trains before even getting a chance to step into the sardine can. I do see this having a cascading effect in the surrounding areas for employees willing to live in Williamsburg, Astoria, Manhattan for the lifestyle. More price sensitive folk will probably consider Sunnyside / Woodside.

Completely agree @Alex Yi . Infrastructure/MTA isn't ready to handle the influx in people. E,F,M,R in Queens is already packed. Can barely get a seat even 10 stops outside of Manhattan during commuting hours. Will be interesting to see how this unfolds.

@Alex Yi I agree. My fiance owns a home in Woodside and the train line delays there are so unpredictable at times. 

Curious to see how this plays out. 

@James Lee

Hey James! You are missing one other train line, the G-Train at Court Square.

Hardly much ridership as most people go back and forth to Manhattan.

NOW, it may be possible that you go to work in LIC but live in Brooklyn and take the G-Train only 15 minutes to the Bed-Stuy / Clinton Hill Brownstone Neighborhoods!

I can imagine all the other trains will be super crowded. But the G-Line? Probably not for a while!

@Darnell Butler Tech and Corporate jobs of 150K won’t be going into Nashville. NYC and VA are going to get the large share of those.

@Russell Brazil You sure do know your area. Having a Big company move into town really creates growth and opportunities for the community. For REI who understands the market this could be the right time.

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