Amazon’s decision to develop two new campuses, ending a yearlong bidding war from cities across the continent, has the potential to have a huge impact on the commercial and residential futures of the metropolitan areas the company chose. One of those is our own New York City.
One of Amazon’s new “HQ2” locations is set to be built in Long Island City. The state successfully won a bid to bring Amazon to the Queens borough by offering performance-based incentives of over $1.5 billion, which includes an average $48,000 for each new job the company creates, as well as the option to apply for other tax incentives.
Impact on housing, commercial property
Amazon has faced criticism over the years for its Seattle campus, which many say prompted a housing crisis in the city. The attractiveness of high-paying jobs influences home prices and worth, and many New Yorkers are concerned Amazon could hike housing costs to unsustainable levels for residents.
Because of these concerns, the New York City Council plans to host three hearings about the deal. City councilors are slated to question city officials and Amazon executives about the negotiations for the campus. The first will be held December 12 at City Hall, which will be through the Economic Development Committee. The January meeting will be through the Finance Committee and the February meeting will be through the Land Use Committee.
Building the Amazon headquarters could be a boost for the construction industry throughout New York and neighboring New Jersey. The project would likely add many infrastructure jobs with long-term contracts, as the completion is likely to take some time. It also has the potential to increase commercial real estate prices in the city as it would for residential properties.
New York and New Jersey construction industry professionals may want to keep an eye on the plans moving forward to be up to date on the latest stages. We will post project updates as more information about its scope and impact become available.