After a yearlong search that drew 238 bids from across the nation, Amazon announced on Tuesday that it would divide its second headquarters between two offices, one in Queens, NY and the other in Arlington, VA. The precise location of the Virginia headquarters will be an area Amazon is branding “National Landing,” comprised of parts of Crystal City and Pentagon City in Arlington, and Potomac Yard in Alexandria. The e-commerce giant will be investing a total of $5 billion in developing HQ2 and will create over 25,000 high-paying tech jobs at each location.
The news is anticipated to have a substantial impact on the area’s real estate market over the next ten to twelve years. Portions of Arlington, Alexandria, and McLean, especially those areas that are a short distance from Metro stops on the Yellow and Blue lines, will show increased demand and property valuations as employees begin to move to the area.
Despite the influx of new residents and investment, Stephen S. Fuller, an economist at George Mason University, said that the effects of Amazon’s move on the region would be gradual and dispersed through metropolitan Washington.
There will be a significant influx of renters, and the pace of apartment construction in the area is expected to accelerate. Arlington County will need 8,000-9,000 extra housing units, with 70% rentable, to accommodate the new residents, according to an analysis by Fuller. In Crystal City, 3,100 apartment units are currently under construction at an average rent of $2,387.
Real estate sellers, investors, and landlords are all expected to come out as winners as a result of Amazon’s decision. If you would like more information about how this news will affect you, call Carolyn today at (240) 353-7601!