Marcus & Millichap

Special Report

Amazon HQ2 and HQ3 Destinations - November 2018

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Amazon Names HQ2 and HQ3 Destinations
Potential Impact for New York City and Washington, D.C.

Queens/Long Island City
Furthering the transformation of Long Island City, Amazon inked a deal to lease 500,000 square feet ramp-up as space become available at One Court Square, 7 miles from La Guardia Airport. The current tenant, Citigroup, will be vacating the space early next year. While Amazon’s move into Long Island City will not initially impact office vacancy as the company takes space previously occupied by Citigroup, other firms will undoubtedly view the area in a fresh light, raising the profile of Long Island City and the broader East River coast. Additionally, the tech giant has entered negotiations for a 4 million-square-foot headquarters along the waterfront at Vernon Boulevard and 44th Drive in the Anable Basin area. Amazon’s move to the Long Island City waterfront adds considerably to the overall tech presence in the borough, which was established last year with the opening of the Cornell Technology Campus on Roosevelt Island.

Arlington/Crystal City
Amazon begins its expansion into northern Virginia by leasing a total of 500,000 square feet of office space across three buildings in Crystal City. The properties are within two blocks of the Crystal City metro station and directly across from Ronald Reagan National Airport. Relatively quick access to the District of Columbia is provided either via two metro lines or U.S. Route 1.

With this initial move, Amazon will begin to hire in Crystal City, adding an expected 400 roles in 2019 and a total of 25,000 new jobs by 2030. That represents an 11 percent expansion to the Greater Alexandria area employment base, which encompasses Crystal City. This number of new employees will have little impact to the 3.3 million people employed in the entire D.C. metro area. The positions at Amazon are projected to have an average income of at least $150,000 per year, above the area’s median annual household income of $94,851.

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