Rental Property Investor · Orlando, FL · Member since 2015 · 131 posts · 62 votes
Afternoon BP,
After news broke of Amazon moving forward on finding a new HQ, I got really excited for the possibility of a new/increased opportunity in a new area. I currently own and rent in Central Florida, but wouldn't mind investing elsewhere if the opportunity was right.
I lived in Seattle for 2 years and saw (have seen) what Amazon/Microsoft did not only for the job market, but rent as well.
I know the Triangle in NC was thrown around as a hopeful location, but it's far too early to tell where it's going.
My question to the community is where/when do you really start to dig into the surrounding area that will become the new site and how do you as an investor stay up to date on what's happening with a big build like an Amazon HQ2?
With the fact that Uber, Google, Microsoft, Apple and Autodesk already have strongholds here, thanks in part to Carnegie Mellon University's AI developments, I can see our city welcoming Amazon's 2nd HQ. Amazon is already here with a fulfillment/distribution center and our Mayor, Bill Peduto, is poised to recommend several sites that could accommodate Amazon's requirements: software development talent, near an airport of which we have Pittsburgh Int'l Airport, highway systems and while the city itself houses 306,500 people the greater metro area of 2.36 million is well within Amazon's 1mil. requirement. Pittsburgh is also poised to add incentives besides having a variety of available sites, to tax breaks/grants and workforce training not to mention that Pittsburgh is a hub for robotic, technical and manufacturing advancements. Since we have the talent, the land and the commitment to welcome Amazon's vision, I see Pittsburgh a strong candidate for it's future investment.
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
9y
I thought ATL was going to be their new HQ2. Anywhere they go is going to be a boom. RE is all about jobs and employment. Anytime an employer or the Military / Gov bring jobs to a community, the RE market goes up. It is a good choice, it is as far from HQ as you can get and a transportation hub for the East coast.
Rental Property Investor · Albany, OR · Member since 2015 · 312 posts · 136 votes
9y
@Matt R. Do you think they will put their headquarters so close? I was expecting something on the other side of the country, or at least somewhere in the middle. I don't see them sticking to the West coast, but then again who knows!
@Matt R. Do you think they will put their headquarters so close? I was expecting something on the other side of the country, or at least somewhere in the middle. I don't see them sticking to the West coast, but then again who knows!
Idk if that is a consideration and it is about the same distance as Denver. I think their major concern is being able to attract future top talent and SD could go far in that respect. I know San Diego has an international reputation for having a strong outreach team attracting new employers. They are probably very well prepared to reel this one home too. They also still own the old Chargers stadium and that would be near perfect for the Amazon HQ2.
Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
9y
Josh Calcanis I'll go out on a limb and say any of these city-bid packages are going to involve housing proposals, infrastructure changes, etc. I can help but think you'll have a long, long, loooooong runway to see which cities are going to make the "finals list" and everything else. No city is going to be able to put together a bid package quietly, any quieter than they could do for the Olympics.
Consequently, I think we are a long way from any kind of actionable timeline. Just my 3 cents...
San Francisco, CA · Member since 2017 · 56 posts · 23 votes
9y
Originally posted by @Account Closed:
I have done some reading about their potential move, my question is NJ or NYC even in consideration?
From a tax perspective, completely illogical. From a talent, location, population density perspective, it can make sense. Seeing that Seattle is a second tier city, I can see them following in that rather than going with one of the Big 4, ie. NY, LA, Chi, Dallas. Conversely, I can't see them going with a tertiary unless the location is strategically located with access to lots of colleges, good transportation, leisure amenities, and plenty of suburban markets with growth potential.
In the NE specifically, I can see Philly, Baltimore, Boston, Charlotte (probably not due to social issues currently), and DC.
Investor · Chicago, IL · Member since 2016 · 160 posts · 41 votes
9y
agree with @Jon Holdman..its nothing but speculation at this point. People from Chicago would love to have Amazon set shop here like everyone else wants Amazon in their city. There are lot of variables involved than just universities, or airports....we shall see.
Gaithersburg, MD · Member since 2009 · 80 posts · 47 votes
9y
So what are the hypothetical investment plans PB'ers have in mind. Do you buy townhouses, condos, anything you can get your hands on near the new HQ2? Or you analyse what neighborhoods you already find high paid professionals in and buy there? Or by school district? Buy commercial properties near HQ2? Buy raw land near HQ2?
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
9y
If they come to Boston - where GE is moving their HQ as well - there will be significant additional pressure on the housing market.
It seems to me that MFRs are already in high demand for investors and are commanding crazy prices.
I showed a disgusting slum of a 3-plex in East Boston a few weeks ago that was priced at $600K. Another, in much better shape hit the market in JP at $1.2M and another in Brighton at $2.5M.
It's hard to imagine prices going much higher, but that would be the natural outcome.
Real Estate Agent/Property Management · Houston, TX · Member since 2014 · 1k+ posts · 827 votes
9y
They're going to move someplace where the cost of operating is low, where they will get the biggest bribe incentive to move there, and where the politicians are "malleable." I don't see any of the traditional tech hubs fitting the bill.
Investor · Annapolis, MD · Member since 2017 · 7 posts · 2 votes
9y
I know Baltimore and the new Port Covington neighborhood (part of Under Armour's new HQ) will be lobbying hard...
https://www.google.com/amp/www.baltimoresun.com/news/maryland/politics/bs-md-hogan-amazon-20170915-story,amp.html
They also just got a big investment from Goldman..
https://www.google.com/amp/www.baltimoresun.com/business/under-armour-blog/bs-bz-port-covington-partner-20170913-story,amp.html
This would be huge for Baltimore. Already a good REI market, it would become even better.
Landlord/Mentor · Baltimore, MD · Member since 2011 · 96 posts · 97 votes
9y
As a local investor in Baltimore, I would love to see Amazon move here. We have a great location- a good port, rail, and an international airport with a 30 minute drive. The cost of real estate is still low compared to many other areas and we currently have a business friendly Governor. This city has world class medical facilities, great restaurants, and within a few hours drive you can be at the ocean, in the mountains, in Philly, NYC, or DC. On the other hand- finding 50,000 people to employ that will show up to work on time that don't already have a job is going to be a serious challenge. With the assumption that the average job will pay 12-15 per hour that will get the average worker a lot further in Baltimore then it would in other places like Boston, or NYC, or Portland, or LA, etc.
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
9y
@Account Closed All the players with cash will be buying raw land and basically everything else. I have heard of several REITs and hedge funds getting ready to make plays. Once it is down to a few possibilities some will start getting things under option.
Of course hedge funds might put 100 times more under option than they plan on buying. If the prices rise they will make a fortune.
Believe me the price people are having to pay for a year long option in DFW has already gone up.
If there is a list of finalists ("going back to the well" for more incentives) then every place mentioned will be impacted.
It looks at markets with a surplus of housing currently available, metros that have competitively priced housing, places with sufficient labor pool, plus a few other items to ultimately get to an overall grade for potential metros with Philadelphia, Washington D.C. and Chicago topping the list.
Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
9y
@Jeremy Michiels I could not more strongly disagree with much of the thinking in that article. To start with... Amazon is probably not looking for existing housing stock. They are also expecting to recruit world wide for the people to work there. They have stated repeatedly it has to be a place people will be willing to relocate to not a place that has 50,000 workers waiting for the jobs.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
9y
Originally posted by @Account Closed:
As a local investor in Baltimore, I would love to see Amazon move here. We have a great location- a good port, rail, and an international airport with a 30 minute drive. The cost of real estate is still low compared to many other areas and we currently have a business friendly Governor. This city has world class medical facilities, great restaurants, and within a few hours drive you can be at the ocean, in the mountains, in Philly, NYC, or DC. On the other hand- finding 50,000 people to employ that will show up to work on time that don't already have a job is going to be a serious challenge. With the assumption that the average job will pay 12-15 per hour that will get the average worker a lot further in Baltimore then it would in other places like Boston, or NYC, or Portland, or LA, etc.
I think I read the average pay for these new Amzn jobs is 100k. Perhaps count on another 50,000 non Amazon jobs added at that hourly rate.
Palos Heights, IL · Member since 2016 · 2 posts · 2 votes
9y
First, Amazon is only here in Illinois from an operational perspective to deliver goods to a very large city in a short period of time. They have built distribution centers in surrounding areas where real estate can be cheaply purchased. Illinois infrastructure is terrible and is only 1 of 2 major cities that do not have a bypass. A bypass is the ring around the city. Our tech workers in Chicago are behind other competing states, that are in the running. Texas, which is already a major tech hub with better internet infrastructure. Texas is more competitive from a legal perspective if you’re an employer. Texas was and is the headquarters of the recent Whole Foods acquisition.
Sherman Oaks, CA · Member since 2013 · 3k+ posts · 2k+ votes
9y
Originally posted by @Account Closed:
He owns a $20 million home in DC and he owns the Washington Post. Of course it'll be Washington, DC ...
He also owns a 30 million dollar house in Beverly Hills. I can still see some DC leanings as Bill Gates is next door. It maybe more political advantaged for his future biz we can understand.