We asked some of our Governors and Visionaries from the Northern Virginia and New York City markets: “What is your reaction to Amazon choosing your market for their new headquarters?”
"The impact of BRAC [Base Realignment and Closure, a federal government program to close excess military installations and realign them in a way that reduces costs and increases efficiency] on Arlington was huge, with more than 10 million square feet of Department of Defense tenants and contractors leaving the market, and vacancy rates in Crystal City soaring above 20 percent. After 7 years, much of that space remained vacant, so the Amazon deal is huge and will drive much needed absorption in that market, as well as hastening its conversion to a more balanced and tech-driven economy."
Managing Partner, Network Realty Partners
“I think the lasting affect will be positive on New York City and certainly positive for this gentrifying area in the Queens borough. That said, I think the process was flawed by allowing for so much in public funding to be spent to woo Amazon here. New York City has a lot of infrastructure/transit issues that could have benefited from those funds. At the end of the day, though, more high-paying tech jobs is a good thing for the city.”
New York City
“It will definitely create many jobs and allow our market to remain hot and to grow exponentially. However, our market also needs to figure out a way to make housing more affordable with the increasing housing demands near the Amazon campus.”
Colleen Wevodau, CPA, MBA
Senior Manager, Baker Tilly Virchow Krause, LLP