Amazon to DC - what does it mean for real estate?
By now I'm sure you're all aware that the giant is moving to Crystal City. Here's what it means for jobs, rents, and real estate in our region.
Historically, we have added 40,000-50,000 new jobs per year, so the addition of 25,000+ Amazon jobs, coupled with the investment of technology and infrastructure that will accompany the move will yield significant benefits for the entire Washington region.
Here are a few talking points which are based on today's early information.
- Amazon's selection of the Washington region as a co-location for HQ2 will result in an increase in demand for housing. However, the planned 25,000 jobs will likely be filled over the course of 3-5 years, so the immediate impact on our market will be meaningful but muted.
- Our housing inventory is relatively fixed, and it will take several years for new projects to move through the development pipeline, so we can expect more competition and upward pressure on prices in both our existing rental and for sale housing inventory.
- As always, location matters. Those Washington area submarkets with access to metro and proximate to Arlington/Crystal City will likely be most impacted by the move both in the immediate and long terms.
A few fun facts about their pending move:
- 4 million -- The office square footage that Amazon is expected to occupy in Northern Virginia.
- 6.2 million -- The office square footage that developer JBG Smith controls in the area where Amazon's second headquarters will be located.
- 25,000 -- The number of jobs Amazon will create in Northern Virginia over the next 11 years.
- 400 -- The number of people to be hired for the headquarters in 2019.
- $150,000 -- The expected average wage for an Amazon employee in Northern Virginia.
- $550 million -- The amount Virginia will pay Amazon for creating 25,000 jobs.
- 267,000 -- The number of housing units that the DC area will need to create by 2025 given the arrival of Amazon, per the Urban Institute.
- 170,000 -- The number of housing units the region is on pace to add by 2025.
- 1,200 -- The number of new apartments and condos on the boards to be built in Crystal City.
- $2,003 -- The average monthly rent for a Class A apartment in Arlington County.
- $23 million -- The sales price for Jeff Bezos' home in Kalorama.
- 16-25 -- The number of minutes it will take Jeff Bezos to be driven from his DC home to the Amazon offices, depending on traffic.
- 3-4 -- The number of minutes it will take Jeff Bezos to be flown by helicopter from his house in Kalorama to the Amazon offices.
It will be very interesting to watch as everything unfolds, but it's certainly exciting.
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