Amazon mum on reports it will split new headquarters
07 November, 2018, 11:08 | Author: Corey Lynch
The report suggests a decision could come as soon as this week. But some observers are critical of the company's methods and wonder now if it was being totally forthright through the process. Amazon executives said they would make the announcement this year and invest $5 billion in the mega-project, which would be equivalent in scale to its 45,000-employee Seattle site. Amazon has said it would pick one city since HQ2 was announced more than a year ago.
An Amazon employee took to Twitter this weekend to express outrage over leaks surrounding plans for the tech giant's new headquarters.
Well, so much for that.
Later, The New YorkTimesreported that Amazon was "nearing a deal to move to the Long Island City neighborhood of Queens" and "is also close to a deal to move to the Crystal City area of Arlington, Virginia, a Washington suburb".
Amazon announced a list of 20 finalists for HQ2 in January, including: Atlanta; Austin; Boston; Chicago; Columbus, Ohio; Dallas; Denver; Indianapolis; Los Angeles; Miami; Montgomery County, Maryland; Nashville; Newark; New York City; Northern Virginia; Philadelphia; Pittsburgh; Raleigh; Toronto; and Washington, DC.
Choosing D.C. and NY "is a repudiation of all these stories about Silicon Valley getting too expensive, and that there are 20 different cities where you could successfully operate a tech company", said Greg Bialecki, a principal at the real estate firm Redgate, and a former MA housing and economic development secretary.
Amazon has been tight-lipped about the process and declined to comment on the latest news.
The city and state were also not willing to fork over some of the incentives other municipalities were offering in order to secure the new Amazon location, but Clouse said that's probably a good thing in the long run. The Empire State Development Corp., which has been handling negotiations with Amazon, has not disclosed the state's incentives package, though the Times reported it could be in the hundreds of millions of dollars. Or, CNBC.com added, Amazon might split HQ2 between those two locations.
He also pointed out Denver's recent successes in attracting headquarters from large companies. Specifically, the Post reported that Crystal City, just outside Washington, D.C., is the frontrunner.
Shares of Amazon were up almost 0.7%, to $1,638.50, in afternoon trading on Tuesday.
After a yearlong search for a second home, Amazon is now reportedly looking to build offices in two cities instead of one, a surprise move that could still have a major impact on the sites it ultimately selects.
Since the Long Island City location has not yet been confirmed, we don't have information about where exactly any new buildings might be, but we'll be sure to keep you posted! It's part of the campus of 44 Amazon buildings, with more under construction. Its chief executive, Bezos, has a net worth of about $135 billion and is the richest person in the world, according to Forbes.
"My gut feeling is that the size of this project can not be easily supported by a single community, and therefore they will split this project into two communities", Austin economist Angelos Angelou, principal executive officer of economic development and site selection consulting firm AngelouEconomics, tells CultureMap. Search Amazon HQ2 on Google News: 1.8M results.
Amazon last month touted improvements in efficiency, which could help it offset costs from more free deliveries. Prime customers are more likely to be frequent shoppers and also tend not to be overly price sensitive.
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