On Tuesday, November 14th, 2018, Amazon announced that they will be opening their second headquarters, better known as HQ2, in both New York City and Virginia. After a competitive bid by over 200 cities around North America, it was settled that Amazon would open the new headquarters in the neighborhood of Long Island City, Queens. This stretch of land overlooking Manhattan has seen a development boom over the last 10 years, and with this recent announcement, we can expect further expansion in Long Island City and surrounding neighborhoods.
The 4 million square feet new headquarters will be located along the East River waterfront between 46th Avenue and 44th Road by Anabel Basin. There will also be a satellite location nearby at the Citibank building, where Amazon will lease 1.4 million square feet of prime office space.
H2Q site location is in Long Island City, Queens
H2Q will be located closer to the East River, with a satellite location nearby in the Citibank Building
Amazon will be hiring 25,000 employees for this new office park. That will mean 25,000 new residents that will flood Long Island City and the adjoining neighborhoods in the next few years. There are currently 15,400 units under construction in the area, but that still may not be enough to meet the demand. According to multiple sources, the average income of these workers will be $150,000.
Hiring for HQ2 will begin in 2019. This location will attract world-class talent.
Type of Tenant:
- 25,000 new hires
- College educated
- Single or starter family
- Average income – $150,000 per year
- Surrounding areas to HQ2 and Citibank satellite offices
- Neighborhoods easily accessible to the headquarters by 8 subways, 13 bus lines, bike sharing, and ferries
- Queens neighborhoods of Sunnyside and Astoria
- Brooklyn neighborhoods of Greenpoint and Williamsburg
- Manhattan neighborhoods of Murray Hill, Midtown East
Proposed neighborhoods that should see growth
Based on an annual income of $150,000, a prospective tenant is able to spend a maximum of $3,750 per month on a rental. Currently, the median one-bedroom rental in Long Island City, Greenpoint, and Murray Hill is $3,319 per month, $2,550 per month, and $3,750 per month respectively.
Since the maximum rent a person earning $150,000 per year can afford is $3,750 per month, and assuming rents will go up as more residents enter the neighborhoods outlined, buying a one bedroom will be the best opportunity. This will attract the most renters in the marketplace.
- Queens neighborhoods
With HQ2, there will be a frenzy of investors who want to jump on the prime locations, mostly near the proposed HQ2 site. One bedroom condos in Long Island City currently start at $750,000, with many still enjoying a real estate tax abatement. Astoria has a more charming neighborhood vibe, and homes there start in the high $600,000 range.
- Brooklyn neighborhoodsGreenpoint will see tremendous growth as an adjoining neighborhood to HQ2. Prices have been on the rise here for the past few years and this trend will continue. One bedroom condos start in the $650,000 range. Williamsburg, the next neighborhood on the Water Taxi Line, will suffer from the impending L train subway shutdown in 2019. There, the expectation is that property prices will drop, and maybe a good opportunity to grab a deal.
- Manhattan neighborhoodsOverall, Manhattan has slowed down in sale turnover, and we have been experiencing price drops. Murray Hill and the Grand Central Terminal/Midtown East area are poised to benefit the most. You can grab a one-bed condo in the $800,000 range, however, those will be in buildings built in the 1980s and may need to be renovated. For newer buildings, expect to pay north of $1,200,000.
We have hand-selected properties based on this analysis, and we are ready to work with you more fully to discuss the opportunity of Amazon HQ2 and its impact on the New York City market. For more information, email firstname.lastname@example.org with your interest or questions.
Amazon: Amazon selections New York City and Northern Virginia for new headquarters (link)
Curbed: What does Amazon’s HQ2 mean for Long Island City real estate? (link)
Streeteasy: Amazon in Long Island City: 6 things it will mean for NYC real estate (link)
USA Today: Amazon’s HQ2 will bring 25,000 jobs each to New York City and Northern Virginia (link)