Amazon Headquarters: Why the E-commerce giant selected New York & Northern Virginia to open two news HQ2?
Amazon chooses New York City, Northern Virginia for new Amazon Headquarters is the news today on every newspaper. Apparently, New York & Northern Virginia hit the jackpot, but do we know what Amazon got on these deals?
During more than one and a half year-long, Amazon evaluated more than 230 contenders. Just take the right decision to pick the ideal place to open the new headquarter. After a long deliberation, the online retail giant Amazon has chosen two locations instead of one. To install its second and third North American headquarters.
And finally, Amazon made its decision public declared: New York City and Northern Virginia are the winners for Amazon Headquarters expansion operations. We are talking here about two strategic areas. Because Amazon has selected Long Island City in Queens and Crystal City in Arlington County, Virginia.
I will tell you why later in this article. But, for the time being, let’s ask: What New-York and Washington, DC could expect from this Amazon Headquarters announcement? Any curious person must ask himself why two headquarters at the same time instead of one place?
For some particular reason last week Amazon had decided to split its sought-after office place between two cities. Amazon’s pledged 50,000 new jobs will be created from this deal. This amount will be split by 50/50 between the two cities.
Plus $10 billion of dollars in more infrastructure investment in the surrounding community. This amount will equally split with an estimated $5 billion in spending in each city. Because Amazon wants to build to build a campus comparable to its original Seattle home base in each site. One Amazon Headquarters in Long Island City in Queens and the other one at Crystal City in Arlington County, Virginia.
What Amazon will get in return from this move?
A close analysis of this economic deal will give us a clear picture of this potential transaction. Eventually will decide either is New York and Northern Virginia hit the Jackpot. Or either Amazon just offers itself a cash reward machine. With a large margin of profit with compounding interest over the years. Just by the fact, the company picks these locations to build two Amazon Headquarters.
Let’s take the case by case by case and compare them as apple by apple! Why Amazon choose Northern Virginia?
Washington, D.C is where the money is we are talking here about big financial interest. There is two reason that made Amazon choose to build one of his Amazon headquarters in Northern Virginia. More specifically at Crystal City in Arlington County, Virginia.
What to notice is the term Arlington County, Virginia. Because this part of the country is a strategic place. Where a business like must have an influential presence on the ground. When we go further down we ask why Crystal City?
The reason is clear Crystal City is a specific and strategic area includes offices of many defense contractors. Working for the United States Department of Labor, the United States Marshals Service and many satellite offices for The Pentagon. It is also the location of Ronald Reagan Washington National Airport.
Very interesting so what bring Amazon in this narrow area with a lot of underground roads not attractive for E-commerce. If you think like that let me give an insight. To understand why this choice is the best move Amazon ever made. Yes, the best one since this company in operating business in America.
Because, in the same period, President Trump also attacking The Washington Post Journal. A media who shifted to a major online news outlet on top of being a giant and iconic newspaper outlet. Since Jeff Bezos in 2013 purchased the paper for $250 million cash.
Now the newspaper is now owned by Nash Holdings LLC a company controlled by Bezos. The button line is Jeff Bezos and Amazon need a good presence in Washington for business purpose, lobby, and influence in politic to protect their investment.
This choice it nothing more than a strategic move to secure Amazon assets and make more profit by becoming a real actor in political lobbying and election financing in Washington. For an immediate economic outcome, the Amazon Headquarters in the D.C. area will help Amazon secure a $10 billion Pentagon contract with the Pentagon.
Because during this charming game with the public Amazon.com Inc. is installing a big footprint in the Washington, D.C. to help the company secure a massive Pentagon contract. We are talking about a Bezos & Co. landing JEDI. That’s a reference to the Joint Enterprise Defense Infrastructure contract, which could be worth as much as $10 billion over a decade and is expected to be awarded in April 2019.
Amazon wants to become the first supplier for military and defense technology equipment and services for The Department of Defense. When Amazon seal this deal the company will become the number one main supply the federal government of the United States combined with all branches. Amazon.com Inc. and Jeff Bezos may become in the near future a real political influencer storm with more power than the Koch family brothers.
What the community will benefit from Amazon Headquarters presence in Washington, D.C and surrounding area?
According to Stephen S. Fuller, Director for Research on the Washington Region’s Economic Future: the Amazon effect in the economy will be more beneficial than what in on the deal package because of the social influence an Amazon headquarters will bring in the community.
Because other company and small business will use the old adage “ If Amazon is where I should be there too this is the booming effect of an economy. Let down Stephen S. Fuller, exact quote extract from an article the Washingtonian website:
“There is a growing recognition that we can’t just be a company town. You put Amazon in the mix this is a headquarters function. They say the average income is $100,000, maybe more, and there could be 5,000 people coming right away. Even that would be very meaningful.
What that does is it counteracts what has happened. From March 2017 to March 2018, we had 6,700 fewer federal workers. That loss of employment cost the economy $1.13 billion in economic activity.
Our economy is struggling. We’ve been creating lower value-added jobs ones that are dependent largely on local spending to support them in restaurants, personal services, retail sales and we’re losing higher value-added jobs because the federal sector has shrunk and the federal-contracting sector hasn’t been growing.
“We haven’t even counted the vendors that support an operation like Amazon. All of the other jobs there’s probably another 25,000 to 30,000 that are pretty good jobs, ranging from security to all the equipment servicing, the building management.
Then the spending that these workers generate on Main Street within the local economy would be very helpful as well. On top of that, whoever gets Amazon then becomes visible to every other business, as in ‘If Amazon is in Washington, we should be there, too.’ This is good for us.”
Would Amazon’s HQ2 Really Be Good for Washington? The answer is the definitely yes because it’s a win-win situation for Amazon.com Inc, Jeff Bezos and all people living in the Washington area.
Let’s a take a look at the New York case, why Amazon pick Long Island city New-York?
Long Island City is well-known since 2006 as the new extension of New-York. This place is at one stop away by train to midtown Manhattan, its ideal for business. We know also that UPS, FedEx, Freshdirect direct competitor with Amazon are definitely present in Long Island City.
Long Island City also is also known as a direct competitor of Hollywood in the movies industry such as big production are present there. Likewise, since 2011 many popular and successful TV-Show are produced in New-York.
Nevertheless, Long Island City is the backbone of the New York growing Television and Movies Industry. Definitively Amazon has more interest to install and Headquarter Long Island City otherwise the company would miss what the future of new-york is today.
Let’s see what Long Island City is today before Amazon announcing the company pick this area for is extension Amazon headquarters: HQ2
Long island city and Astoria is the faster booming real estate market in America today. This area attracts all major developers in the country. They New-York governor and the Mayor worked for years on developing Long Island City to make it becoming so attractive than Manhattan.
Nowadays, there are more than, 109 New residential apartment building freshly built there, tantalizing 21550 new units rental apartments available on the market actually. 6,300 businesses with over 93,000 employees. 25 hotels with at least 194 licenses delivered to build more hotels from Long Island City, Astoria, and Jamaica Queens.
Long Island City has the capacity to create 100,000 quality jobs over the next ten years according to the City Expansion Plan.
This city is also the heart of New-York innovation and tech industry by catalyzing job growth. The dynamic will touch both sectors the innovation and industrial. Today more than 15000 people working in construction jobs in Long Island City and are adding every day. Every corner you turn in long island city you crane and building construction booming nonstop.
Queens is the borough where Long Island City is. It is also the most attractive and friendly for business in all New-York State. This Borough is really rich with two major Airports, plus accessibility for ship boats and ferry nearby. The borough is accessible and easy to use the button line is ideal for business.
Long Island City is joining with Astoria in the city plan, it’s also called “Queens Community District 1”. Including Astoria, Astoria Heights, Queensbridge, Dutch Kills, Long Island City, Ravenswood and Steinway neighborhoods.
This area is the most diverse in the country where people speak more languages in the world. The population is pretty big we are talking about: 201,357 people from different race and ethnicity with 45% white, 28% Hispanic, 15% Asian, 10% Black or African origin and 2% others.
That why Long Island City and Astoria have more small business and entrepreneur than everywhere else in America. You can from the Baseball stadium, US Open host area for sports. Museums, entertainment locations, and restaurants for leisure and fun.
Plus many major American and international corporations are operating business activities there. I can name a few: Uber, Lift, Jetblue, Silvercup Studios, FedEx, Ups, Freshdirect, Moma, Hofman studios, Entrepreneur Space Incubator, Tesla, TEI Group, Applied Research & Consulting, Vornado Realty Trust and more.
Nevertheless, it’s important to know that Long Island City and Queens Borough offering a $3000 per employee per year to any company move in Queens. This tax break communities name’s The Relocation and Employment Assistance Program (REAP). Plus many other business and financing incentives are available to companies relocating to this vibrant community.
Nonetheless, this policy attracts many investors, entrepreneurs, and existing company like Amazon to New-York particular in Long Island City and Astoria Area. Known as “Queens Community District 1”. Which is becoming today the home of small and large corporations relocating from Manhattan all or a portion of their office space?
So far, 6,300 businesses with over 93,000 employees. 25 hotels with at least a 194 license to build more hotels from Long Island City, Astoria, and Jamaica Queens. Long Island City, it is becoming the home of small and large corporations relocating from Manhattan all or a portion of their office space.
As a conclusion, by doing this move Amazon did not bring a much serious thing to New-York. Instead, the E-commerce Giant is just positioning itself on a gold mine already set up to make more money.
Will New-York benefit from Amazon moving to Long Island City New-York?
Positively when only 25000 new jobs directly plus can be 3 times more numbers of jobs in the chain reaction with Amazon presence in this area. According to my financial source, it’s almost predictable for not saying certain that Wal-Mart will do the same big move to New York.
Probably, in the first or the second quarter of 2019. Because Wal-Mart is the most brutal competitor of Amazon and their know what Queens Borough and Log Island City Astoria represent in term of the economy for the future.
My last word of the subject is for you investors and resident of Queens and New-Yorkers all over the place. If you are not an entrepreneur yet? You should start thinking about to action before it’s too late. Because the heart of New-York Economy now is Queens Borough.