The losers of Amazon's HQ2 contest have been revealed - but some locals are rejoicing
- Amazon has officially crowned the winners of its second headquarters project, HQ2.
- The company will build offices in the Long Island City neighborhood of Queens, New York, and the newly formed National Landing area of Arlington, Virginia.
- 18 shortlisted cites lost out on the bid, but some locals are celebrating the news as a major victory.
After a year-long search, Amazon has finally announced where its new headquarters will be located.
In a blog post on Tuesday, the e-commerce giant crowned two winners for its HQ2: Long Island City in Queens, New York, and the newly formed National Landing area of Arlington, Virginia.
Officials from the two winning locations celebrated their victory online.
"When I took office, I said we would build a new New York State - one that is fiscally responsible and fosters a business climate that is attractive to growing companies and the industries of tomorrow ... New York can proudly say that we have attracted one of the largest, most competitive economic development investments in U.S. history," New York Gov. Andrew M. Cuomo said in Amazon's blog post announcing the HQ2 decision.
Gov. Ralph Northam of Virginia echoed those sentiments.
"This is a big win for Virginia - I'm proud Amazon recognizes the tremendous assets the Commonwealth has to offer and plans to deepen its roots here. Virginia put together a proposal for Amazon that we believe represents a new model of economic development for the 21st century, and I'm excited to say that our innovative approach was successful."
For the remaining 18 cities that spent several months trying to lure Amazon but didn't make the cut, today's news might come as a big disappointment.
But that's not the case for everyone. Many people are rejoicing the news online, pointing out the various downfalls that this sprawling headquarters could have brought to their city.
These people have likely taken note of the impact that many argue Amazon has had on its current home in Seattle, where locals complain of skyrocketing rents, prolonged construction, gentrification, and gridlock traffic.
Business Insider reported earlier this year that Seattle's median rent increased by nearly three times the national median between 2005 and 2015.
Read more: 7 horrible things that could happen to cities if they win Amazon's HQ2 bid
Amazon's decision to split its headquarters across two cities should help to alleviate some of these issues. However, it is still likely to put pressure on the surrounding areas.
Real estate brokers in Long Island City had already seen a spike in inquiries for properties in the area after reports surfaced that Amazon could select it for HQ2 last week. Some were even buying property, sight-unseen, over text message, The Wall Street Journal reported earlier Tuesday. The Journal's story was published before Amazon had even made its official HQ2 announcement.
While the losing cities won't be able to say they are Amazon's primary home, they can expect to see more of the e-commerce giant as it expands its reach in other ways.
"While other locations may be disappointed not to have secured Amazon's favor, it does not mean they will miss out entirely. Amazon is making enormous investments in warehousing, regional hubs and in retail stores," Neil Saunders, managing director of GlobalData Retail, wrote in a note to investors on Tuesday.
"The company will expand both its customer-facing and back-end operations across America, and the world, in the years to come."
Read more about Amazon's HQ2 project:
- Amazon officially announces its HQ2 will be split between New York and Virginia
- Amazon finally explains why it's cutting its second headquarters in half
- Arlington, Virginia, lured in Amazon with promises of a helipad and a cash grant of up to $550 million
- New York City has lured Amazon with more than $1.5 billion in incentives - here's what else they agreed to
- We walked around Long Island City, the New York neighborhood where Amazon is planning to bring HQ2, and saw why it'd be appealing to the e-commerce giant
