Amazon Shockwaves: New Details and Projections Emerge for the Crystal City HQ2
Amazon’s announcement that they will build their HQ2 in Crystal City has sent shockwaves through our real estate community… and with good reason.
As we discussed last week in our piece “What Does Amazon’s Move to the D.C. Metro Really Mean for Our Real Estate Market?”, the introduction of 25,000 new high-paying jobs (as well as at least 100,000 supplementary jobs) and billions of dollars in development will transform our region. Amazon’s move places even greater strain on our already stretched-thin market and accelerates many of the trends that have made our housing market so hot for the last few years.
Over the last week, new details and projections have emerged which provide even greater clarity on what to expect over the coming years as Amazon lands in our backyard. Here are a few of the most intriguing new items:
- D.C. projected to gain 3,550 new households due to Amazon employees. As UrbanTurf explores, a new report from the Stephen S. Fuller Institute projects that not only will D.C. gain 3,550 new households, but these high-income households may be inclined towards new construction over purchasing existing properties, creating a different avenue of opportunity than simply capitalizing on across-the-board price increases.
- Details emerge on Amazon’s initial commercial leasing activity. As BisNow reports, Amazon plans to lease commercial space within Crystal City and Pentagon City from JBG Smith. Amazon initially plans to lease 500k of existing office space from JBG Smith, and to purchase additional sites from the company. However, it is not clear how much of Amazon’s total 4.1 million square foot development will be covered by these initial plans.
- Amazon may move in two phases, bringing more jobs than initially expected to our region. Amazon plans to move the initial 25,000 jobs to our region during Phase 1 of development, which they will conclude by 2030. In addition, they have teased a potential Phase 2 of their move, to occur between 2030-2034, which would add 12,850 more high-paying jobs to the region.
We are excited to share these items with you, and we expect many more details to emerge over the coming months. But for today, reach out and let’s discuss what these new details—and Amazon’s move as a whole—means for our region, and what opportunities it may open up for you. Email us at firstname.lastname@example.org, or call us at (202) 713 9072 today, and let’s discuss how we can best work together within this exciting, accelerated evolution of our market.