Real Estate Experts Say Amazon’s Move to NY Could Be a Boon for Housing and Jobs
E-commerce giant Amazon isn’t even in New York yet, but that hasn’t stopped an increased interest in open houses, or lawmakers from asking the company to leave. Amazon’s new offices headed for Long Island City (LIC) is a move that some real estate experts say is promising and will bring about bigger effects to the area, both in housing and the overall job market. For example, according to a report from CBRE, a real estate firm, for every 8.9 jobs created, one multifamily housing unit like an apartment or a duplex, is needed. Specifically to Amazon’s case in LIC, two retail employees (in non-Amazon jobs) are necessary for every person making $150,000 (the average salary Amazon stated its workers will make), said Spencer Levy, global head of research at CBRE. He explained that while Amazon said it’s bringing 250,000 jobs to New York, the actual number of new jobs will end up more than that due to the “indirect multiplier effect.” Since new spots like coffee shops, restaurants or retail stores will open to service people who work and live in close proximity to the office, that means a slew of new jobs and workers as well. Another effect from Amazon’s new office is an increased demand on office space, from companies like law firms coming to LIC as well. “That’s what happens when you have a high-quality, high-profile company move to your area,” Levy said. “Not only do people want to provide service to them, but they also want to be associated with them.” Levy said New York and Washington, D.C.’s infrastructure and the cities’ “live, play, work environments” definitely played a role in why these locations were chosen. He added that Cornell University’s new tech campus on Roosevelt Island, while not noted in the official announcement, is another factor as to why Amazon chose LIC; there’s an influx of new talent, ready for Amazon to recruit.
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