Dallas named top contender for Amazon’s new headquarters

6 Replies

Hi

I wish that will be true...

What kind of preparation investors should do and what kind of investment we should target here in DFW if this become reality ...?

Originally posted by @Shital Thakkar :

Hi

I wish that will be true...

What kind of preparation investors should do and what kind of investment we should target here in DFW if this become reality ...?

 DFW is very competitive already, and it will only become more so if it's chosen. I think after the announcement is made, it will be too late, and prices will run up even more. So whoever is fortunate enough to already own property near the selected site will win, and anyone who tries to buy afterward will probably overpay. 

So to answer your question, the preparation is to be careful and don't overpay. If it becomes reality, all kinds of investments will benefit, single family, multi-family, flippers, land developers. But again, only if they don't overpay, which is going to become even more challenging once the the selection is made. 

Echoing the poster above me @Paul B. I will add that:

The “arbitrage” opportunity only exists if an investor knows non-public information and can act on it. Currently, we can safely say that within the existing conditions in DFW, the market will explode if Amazon was to move here.

Personally, I think, there will be a lot of money made and lost as speculation will run rampant as people overpay. But in the long run all investments will benefit: SFR, MF, flippers, land developers.

Biggest question still is: Where will Amazon move? :)

My thinking is a bit different from previous posters. Specifically in regards to it being an opportunity for speculation.
Look at Toyota in Plano. It took a while to build the billion dollar campus. And while employees started buying properties beforehand, it was really mostly once it got closer to launch that the demand increased. So people could have bought properties in Plano and Frisco, and then sold or rented to Toyota executives. Or generally speaking, prices in the area went up, due to limited supply and high demand.

With the Amazon HQ2 it won’t be much different. Once the site of the campus is announced, there will be opportunities to buy properties that are strategically located, for mere speculative purposes.
If 50k new jobs will be created (over what time span?) then there will certainly be a demand for housing. And prices will continue to go up, especially in the types of neighborhoods that amazon workers would prefer to live in.

My guess is that if they move to DFW, it will be north of Alliance area, or maybe towards Mansfield. Can’t see how much more they can squeeze in the north dallas area...unless they are aiming for the area north of Prosper. There is also the west side of Fort Worth, were you have million dollar homes in the Aledo and Weatherford countryside, and Walsh Ranch, a development that will eventually have 15k new homes.
But honestly, I’m not sure Amazon will come to DFW. Wouldn’t Atlanta or a smaller metro area be a better choice?

I was in Chicago area over the Thanksgiving break and the same speculation is occurring there regarding Amazon.  It appeared they had selected three potential sites as options and where in the DD/ negotiating phase with the city and ownership entities.  I would assume the same is going on here.  If DFW were able to land Amazon then the growth and continued appreciation is eminent.  However I think it is a double edged sword as it will price thousands out of their homes.  

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