Crain’s New York – Puncturing the hype about Amazon’s disastrous impact

Reis in the News

By Greg David
Source: Crain’s New York – Puncturing the hype about Amazon’s disastrous impact

The new headquarters Amazon will build in Queens will be a boost to the city and its fast-growing tech sector. But it’s impact has been greatly exaggerated, especially by real estate agents trying to turn a fast-buck. In fact, no city in America can handle the 25,000 jobs more easily than New York.

Let’s start with those jobs. The increase represents about one-half of one-percent of the city’s workforce today and probably even less of the workforce 10 years from now when Amazon is expected to reach its targeted number of employees. By contrast, the other half of the headquarters headed to Arlington, Va., will boost jobs in the Washington area by 1%. The 15,000 new workers Apple plans to hire to Austin will be a 2% increase.

It is the same story for both the residential and commercial real estate markets, according to an in-depth report by Barbara Byrne Denham, senior economist at commercial real estate analysis firm Reis, because both markets are experiencing a sharp boost in capacity.

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