Amazon (NASDAQ: AMZN) is one of those companies that isn't close to slowing down. The online retail giant is not only increasing its footprint by expanding into the grocery and pharmacy space, but also building itself a second headquarters to house employees who will help make the magic happen.
Known as HQ2, Amazon's latest campus will call Arlington, Virginia, home. The company already employs 1,600 workers right outside of Washington, D.C.
Once complete, HQ2 will hire workers in a range of capacities -- from Amazon's cloud computing services to its growing grocery service. All told, Amazon expects to create about 25,000 new jobs at HQ2 and in the surrounding area over the next decade.
Positive news for D.C. real estate investors
Amazon initially sought to build out its second headquarters in New York City (specifically, the borough of Queens), but the company ultimately landed in Arlington. The goal is to begin construction on the project in 2022, with the hopes of having it wrapped up by 2025.
In addition to office space, Amazon's newest campus will include a host of retail shops and public gathering spaces, as well as a forest plaza, complete with trees and a waterfall.
Once Amazon's HQ2 project is complete, it could be a real boon to local real estate investors. First of all, HQ2 will introduce 25,000 new jobs, meaning the demand for housing in the D.C. area is apt to soar and that investors are looking at a great opportunity on which to capitalize.
Second, the addition of Amazon's new campus could help existing property values skyrocket. Local businesses could benefit tremendously from more foot traffic in the area, and stores and restaurants in the HQ2 vicinity could see a notable uptick in revenue once workers start commuting to that space. And since HQ2 will include public space, foot traffic won't be limited to Amazon employees.
Finally, Amazon's new venture might inspire more businesses to open in and around Washington, D.C. That would be a good thing for commercial landlords with empty storefronts to fill -- which, to be clear, is a widespread byproduct of the pandemic. Furthermore, the more businesses that open, the more property values could soar, kicking off a positive cycle.
All told, Amazon's latest move could work wonders for property values in the D.C. area. And it spells opportunity for investors who have been looking to buy property in and around D.C.
Of course, property values are inflated as a whole right now, as record-low inventory and mortgage rates have created a surge in buyer demand. But investors could capitalize on that sweet spot -- the period bridging the cooling-off of today's hot market and HQ2's completion. That next couple of years could be the ideal time to scoop up properties in the D.C. area in anticipation of an influx of workers who will need roofs over their heads.