The retail giant is taking bids to determine the location of Amazon’s second headquarters.
Amazon is accepting proposals from US cities as the megacorporation determines the location of its second headquarters. The retailer is focusing on metropolitan areas with more than one million residents. Focus is also being given to areas that can attract and retain technical workers. Also on the criteria list? Communities that can, according to Amazon, support a stable and business-friendly environment.
Since the September announcement, several cities have been vying for selection. How does this relate to real estate? First of all, the housing prices in Amazon’s new home city are predicted to see a huge increase. In comparison, when Amazon opened its doors in Seattle, surrounding neighborhoods saw as much as an 83% jump in home values. Furthermore, rent prices in the same areas rose by nearly 47%.
“We expect HQ2 to be a full equal to our Seattle headquarters,” Amazon founder and CEO Jeff Bezos said in a statement. “Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. We’re excited to find a second home.”
More than 238 cities are currently in the running. If you live in a city, or near one that wins this bid what could this mean for you? Increased value for homeowners is a given. Additionally, this increased value will result in more equity in your investment. For Anyone who is looking to buy a home, this presents an opportunity for a solid investment in a neighborhood sure to thrive. Renters, your best bet is to buy if you can. Purchasing beyond your financial capabilities? Consider talking to your landlord about a long term lease to protect your current rental rate.
Construction is currently underway on Amazon’s 100 million dollar fulfillment center on Staten Island. Set to open in 2018, this 800,000 square foot facility will create an excess of 2,000 jobs, boosting the local economy. Furthermore, this flux will create more housing opportunities for the surrounding areas. Keeping an eye on this trend is a must-do for anyone looking to invest in real estate. If you have any questions about buying or investing, contact Home Qualified today.