Amazon HQ2 - REI Opportunity?

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Amazon HQ2 - REI Opportunity?

Josh Calcanis
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?

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Gary Swank
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 822 posts · 255 votes
9y

I really liked this article about Pittsburgh vying for Amazon's attention. 

https://www.nextpittsburgh.com/latest-news/amazon-become-one-pittsburghs-biggest-employers/

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. 

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  • Josh Calcanis
    OP
    Rental Property Investor · Orlando, FL · Member since 2015 · 131 posts · 62 votes
    8y

    @Kraig Kujawa I agree with Miami with not being the best fit. I don't feel it fits the Amazon culture I was familiar with when I lived in Seattle. The metro isn't anything impressive either (as is Orlando's)

    0Reply
  • Kraig Kujawa
    Investor · Orlando · Member since 2016 · 151 posts · 72 votes
    8y

    I'm not sure that Amazon wants a big metro like Seattle - I think they want an emerging 36-hr city that they can grow into. But what do I know.

    1Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    8y

    Good to see that Atlanta is still in the running. We have a lot of techies here, so, I think this would a perfect fit. 

    0Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    8y

    Saw 3 great recent articles about this.
    http://www.businessinsider.com/amazon-headquarters...

    https://www.bizjournals.com/dallas/news/2017/09/28...

    This is probably the most insightful one I've see.  Lots of people dreaming, but 4-5 years ago heard something along the same lines from one of the big housing providers.  Regulations in CA kill things..at the time he said something like DFW area had 50,000 lots ready to go for builders and another 50,000 that could be ready in a year.  CA did not have 50,000 lots in the whole state due to red tape and regulations.

    https://www.bizjournals.com/atlanta/news/2018/01/08/viewpoint-amazon-hq2-national-site-search-a-look.html

    1Reply
  • Victor Tatyanin
    Rental Property Investor · Seattle, WA · Member since 2018 · 17 posts · 2 votes
    8y

    Hello, is anyone seriously planning to jump on the metro as soon as the decision has been announced? I'd like to prepare, i.e. get pre-approved, build a network of potential realtors / partners, but I'm a total newbie and don't really know where to start from. 

    If you have any ideas on:

    1) What's the best way to jump into the wagon?

    2) What can be done in advance?

    3) In which metro of the top contenders it's possible to find a cash-flow property? Which are markets with reasonable REI climate? (Positive cash-flows, landlord friendly laws, etc.?)

    1. Atlanta
    2. Washington, DC
    3. Boston
    4. Newark (NYC area)
    5. New York
    6. Philadelphia
    7. Chicago
    8. Denver
    9. Austin
    10. Dallas

    Thank you for sharing your opinions!

    These 10 are top contenders per https://beta.techcrunch.com/2018/01/22/new-study-predicts-atlanta-has-best-shot-at-becoming-amazons-hq2/

    0Reply
  • Account Closed
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    8y
    Originally posted by @Victor Tatyanin:

    Hello, is anyone seriously planning to jump on the metro as soon as the decision has been announced? I'd like to prepare, i.e. get pre-approved, build a network of potential realtors / partners, but I'm a total newbie and don't really know where to start from. 

    If you have any ideas on:

    1) What's the best way to jump into the wagon?

    2) What can be done in advance?

    3) In which metro of the top contenders it's possible to find a cash-flow property? Which are markets with reasonable REI climate? (Positive cash-flows, landlord friendly laws, etc.?)

    1. Atlanta
    2. Washington, DC
    3. Boston
    4. Newark (NYC area)
    5. New York
    6. Philadelphia
    7. Chicago
    8. Denver
    9. Austin
    10. Dallas

    Thank you for sharing your opinions!

    These 10 are top contenders per https://beta.techcrunch.com/2018/01/22/new-study-predicts-atlanta-has-best-shot-at-becoming-amazons-hq2/

     Atlanta is all but out of the running because the state government attacked one of their largest employers... Delta Airlines.  They have shown they are neither business friendly or trust worthy.

    1Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    8y

    I hate to say it, but I agree that Attlanta probably lost it

    0Reply
  • Paul B.
    Rental Property Investor · Dallas, TX · Member since 2015 · 503 posts · 504 votes
    8y
    Originally posted by @Victor Tatyanin:

    Hello, is anyone seriously planning to jump on the metro as soon as the decision has been announced? I'd like to prepare, i.e. get pre-approved, build a network of potential realtors / partners, but I'm a total newbie and don't really know where to start from. 

    -

     I would think it may be too late by the time the location is announced. Anyone who already owns property there will make out well. But speculators may run up the real estate prices after the fact. I suppose you could lay some groundwork in all ten of these cities. But that seems time-prohibitive.  

    0Reply
  • Account Closed
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    @Paul B.   Big players are certainly getting ready to pounce.  I think owners should probably be thinking about reducing the lengths of the options the are selling on commercial properties right now.

    If it was reduced to 5 markets I would be buying options on raw land in all of them.  It is common for those options to be 6-12 months.  Raw land options are also fairly cheap.

    0Reply
  • Matt M.
    Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
    8y

    They were out here in January for an in-depth look. Denver is in top 4 now, and I have "heard" that it will be Denver. We have 8 sites that were submitted to them. I've been looking at land, housing, whatever in those areas and putting the pieces together to mobilize if/when it's announced. I'm betting you have 24 hours to act before everyone finds out. 

    0Reply
  • Account Closed
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    @Matt M.  I know it is still up in the air.  The hedge funds are spying like crazy but have not been able to find out.

    Of course it is also not clear how much of Amazon's research is really searching for the new HQ2 and how much is just good general data mining.

    For example...  I do know they are interested in the concept for a hyperloop connection between Dallas and Austin.  Of course that would be a game changer for both cities.

    Does that mean they are really considering Austin, or really considering Dallas, or is one of their employees just really into hyperloops, or is Jeff Bezos considering buying another Texas home, or is Amazon considering investing in hyperloops, or does Amazon think it will impact their current or future investments in Texas? or... or... or... or... or...

    Amazon is so secretive it is almost impossible to know where they will go.  For example nobody knows for sure what part of their business will be based at the new headquarters.  I think their new pharmacy / insurance business will be based their among other things but that is just an educated guess.

    0Reply
  • Jim Cummings
    Residential Real Estate Broker · College Station, TX · Member since 2013 · 1k+ posts · 969 votes
    8y

    Apparently Amazon has a Multi-Billion Government Contract for Cloud Services for the Military, and some see this as a lock for the Washington, DC area?

    0Reply
  • Account Closed
    Investor · Princeton, TX · Member since 2014 · 1k+ posts · 1k+ votes
    8y

    I do not think that will help at all.  Most of the large government contractor are not based anywhere near DC.  In fact, I do not know of any that are.

    Even when the NSA headquarters had a Rockwell sign out front Rockwell was not based in DC.

    0Reply
  • Victor Tatyanin
    Rental Property Investor · Seattle, WA · Member since 2018 · 17 posts · 2 votes
    8y

    One more piece of guess. https://www.forbes.com/sites/johnkoetsier/2018/03/...

    I wonder if it's possible to find cash-flow SFHs in Northern Virgina or Montgomery County? 

    0Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    8y
    Originally posted by @Victor Tatyanin:

    One more piece of guess. https://www.forbes.com/sites/johnkoetsier/2018/03/...

    I wonder if it's possible to find cash-flow SFHs in Northern Virgina or Montgomery County? 

     All my properties here cash flow. Probably not in the amounts y ou would like, but I make good money on them, and watch them go up in value $2k per month.

    [email protected]301-893-4635Podcast Guest on Show #192
    District Invest Group545 Reviews
    WebsiteView Page
    0Reply
  • Petra M.
    Investor · Los Angeles, CA · Member since 2015 · 73 posts · 49 votes
    8y

    Likely Crystal City VA...

    WaPo article

    0Reply
  • Britt McEachern
    Member since 2018 · 2 posts · 2 votes
    8y

    Interesting! I have condo on the market in downtown DC. I wonder if it might be time to put the listing on hold and see how things play out...

    It seems like the consensus is that if they do declare that the new HQ (or one of them?) will be in a particular market, the market will appreciate rapidly. So it may be worth holding onto this. 

    1Reply
  • Florence Lee
    Toronto, Ontario · Member since 2016 · 30 posts · 23 votes
    8y

    Split between Crystal City and Queens according to New York Times:

    https://www.google.ca/amp/s/www.nytimes.com/2018/11/05/technology/amazon-second-headquarters-split.amp.html

    2Reply
  • Bruce Lynn
    Real Estate Broker · Coppell, TX · Member since 2011 · 5k+ posts · 4k+ votes
    8y

    WSJ says today down to 3 cities....Northern Virginia, NYC, Dallas.   Tonight I hear it will be split between NYC and Dallas.  Investor recently bought a building site for them in downtown Dallas.  Not sure if that is speculation or inside knowledge.

    2Reply
  • Michaela G.
    Investor · Atlanta, GA · Member since 2013 · 3k+ posts · 3k+ votes
    8y

    I had hoped for Atlanta, but these games and drawn out search really turned me off. Im over it. Dont really care where it goes.

    0Reply
  • Amit Kal
    Investor · Sunnyside, Queens, NY · Member since 2015 · 213 posts · 159 votes
    8y
    @Florence Lee fingers crossed Queens is it! As a lifetime resident, community activist and small time RE investor, this would be a huge boost to our borough. I do worry about the strain this will put on our already challenged infrastructure from transportation to schooling but I’m confident that we can work through it.
    1Reply
  • Shital Thakkar
    Specialist · Dallas, TX · Member since 2010 · 511 posts · 252 votes
    8y
    • HQ West = Seattle
    • HQ East = Crystal City, VA
    • HQ Center = Dallas
    0Reply
  • Kraig Kujawa
    Investor · Orlando · Member since 2016 · 151 posts · 72 votes
    8y

    http://austin.culturemap.com/news/innovation/11-05...

    Austin still in the mix.

    But really, no one knows

    1Reply
  • Charan K.
    Rental Property Investor · Manassas VA / Columbus OH /St. Johns FL · Member since 2017 · 86 posts · 25 votes
    8y

    There are no cash flowing properties in NoVa(If lucky, it's rare to find one). Other than moderate property appreciation there won't be significant difference. Raised rents offset the appreciated property prices/Local Taxes/Expenses.

    0Reply
  • Dan V.
    Real Estate Consultant · Norfolk, VA · Member since 2017 · 345 posts · 202 votes
    7y

    Breaking News: Amazon Announces New York and Virginia as HQ2 Picks

    "Amazon laid out its plans for two of the biggest economic development projects in the country on Tuesday, announcing that it will put major corporate outposts in New York City and Arlington, Va.

    The two locations, in Long Island City in Queens and Crystal City in Arlington, just outside of Washington, will eventually house a total of more than 50,000 employees, the company said in a statement. It also said the new sites would require $5 billion in construction and other investments." - The New York Times

    Congratulations to those who have properties around these 2 areas. 

    1Reply
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