Long Island City has been named as one of the two new headquarters for Amazon. The other location is in Arlington, Virginia. The combination of these two headquarters is expected to expand the workforce by 50,000 employees, 25,000 of which will be based on New York. Since the 1990s, Long Island City has seen rapid growth within its skyline. This will make the Queens neighborhood a new technology hub. “There have been 41 new apartment buildings built there since 2010, according to an analysis by the city. Last year, more new apartments were built in Long Island City than in any other neighborhood in New York. The reasons, in large measure, are its proximity to Manhattan, its relatively low cost and the views.”[1] The close proximity to Midtown Manhattan and the low cost of real estate are one of the biggest selling points to many residents and companies.
New York City announced that they would put forth $180 million in new spending in Long Island City, which seems to line up with Amazon’s headquarters announcement. The infrastructure will need a lot of readjustments to be able to keep up with this growth. Some of the LIC residents are concerned about to overcrowding and possible displacement that this major company would bring. Investors are taking note of the potential 25,000 Amazon employees that will need accommodations. Development is on an upswing in Long Island City, and there is a projected 11,700 new units to be available by 2020. The price of real estate is continuing to rise, as more residential development takes place.
This huge new wave of development will certainly boost the economy of New York City, and add on to the already steep real estate market prices. “Marcus & Millichap’s Eric Anton likened Amazon’s move to China’s plan to extend infrastructure outward to countries in Europe, Asia and Africa…’If indeed they’re bringing that many people to Long Island City,” he said, “it’s the biggest success for New York in 10 years.’”[2] The move would be crucial for the Queens neighborhood real estate market .
[1] Goodman, J. D., (2018, November). Amazon’s HQ2? Make That Q for Queens. Retrieved from The New York Times https://www.nytimes.com/2018/11/05/nyregion/amazon-hq2-long-island-city.html Accessed on November 7, 2018
[2] Solomont, E.B., (2018, November). This is how Amazon HQ2 could impact Long Island City’s residential market. Retrieved from The Real Deal:https://therealdeal.com/2018/11/09/this-is-how-amazon-hq2-could-impact-long-island-citys-residential-market/?utm_source=internal&utm_medium=popular_widget&utm_campaign=posts_popular Accessed on November 9, 2018