Contact: Barbara Byrne Denham
Phone: 212-921-1122 ext. 286
The Reis whitepaper that scored Amazon’s HQ2 listed criteria in a quantitative analysis picked New York City as number one and Suburban Virginia as number six. With its selection of these two metros, Amazon adhered to its criteria laid out in its original Request for Proposal
New York, NY, November 13, 2018 – With its announcement of selecting New York City and Suburban Virginia for its HQ2(s), Amazon has ended the suspense of what location the company would choose. While the selection of the two East Coast cities may have surprised many, the criteria laid out in its original request for proposals (RFP) last September clearly indicated what it was looking for: a large cosmopolitan city where it could scale up operations in a short period.
In our whitepaper, Amazon HQ: Location Decision and Scoring Analysis , we followed the criteria and came up with a measure for all of the quantitative and qualitative specifications listed in the RFP and tabulated the results. Our final list that included New York City as number one and suburban Virginia as number six (with Washington DC coming in 3rd) shows that Amazon followed its criteria in selecting these two cities. In short, these two locations feature the three main requisites for scaling up operations: access to labor, access to public transportation and space. Yes, space, as in developable space in Long Island City as well as other sites including Hudson Yards and a number of Midtown sites that have been razed in the last two years. New York City and suburban Virginia also have the two qualitative features listed in the RFP: cultural amenities and access to higher education.
The Reis whitepaper included neutral numeric measures for public transportation access, professional services employment, access to cultural amenities and higher education. The Reis scoring analysis also subtracted variables such as the cost of doing business (office rent differentials) the cost of living (apartment rent differentials) and state and local taxes – all of which New York City and suburban Virginia scored poorly on. Our methodology quantified these variables in an objective manner to provide an impartial scoring and ranking for how cities and suburban markets across the U.S. met the criteria.
In short, we congratulate Amazon as well as New York City and suburban Virginia for this historic decision. We hope our analysis clarifies why Amazon chose these two locations for its future growth.
Results for the Top 10 Metros
About Reis, Inc.
Reis provides commercial real estate market information and analytical tools to real estate professionals. Reis maintains a proprietary database containing detailed information on commercial properties in metropolitan markets and neighborhoods throughout the U.S. The database contains information on apartment, office, Office, warehouse/distribution, flex/R&D, self-storage, seniors housing, student housing and affordable housing properties.