As Amazon Cancels New York HQ2, The Governor and Market React

As Amazon Cancels New York HQ2, The Governor and Market React

Commercial News » New York City Edition | By Michael Gerrity | February 15, 2019 9:05 AM ET

On the heels of Amazon's surprise announcement yesterday to cancel moving forward with its plan to build a new headquarters facility in New York's Long Island City due to some Democratic political opposition, both the local real estate market and the Governor's office were stunned.

In a prepared statement, New York's Governor Andrew Cuomo released the following comments this week:

"Amazon chose to come to New York because we are the capital of the world and the best place to do business. We competed in and won the most hotly contested national economic development competition in the United States, resulting in at least 25,000-40,000 good paying jobs for our state and nearly $30 billion dollars in new revenue to fund transit improvements, new housing, schools and countless other quality of life improvements. Bringing Amazon to New York diversified our economy away from real estate and Wall Street, further cementing our status as an emerging center for tech and was an extraordinary economic win not just for Queens and New York City, but for the entire region, from Long Island to Albany's nanotech center.

"However, a small group politicians put their own narrow political interests above their community -- which poll after poll showed overwhelmingly supported bringing Amazon to Long Island City -- the state's economic future and the best interests of the people of this state. The New York State Senate has done tremendous damage. They should be held accountable for this lost economic opportunity.

"The fundamentals of New York's business climate and community that attracted amazon to be here - our talent pool, world-class education system, commitment to diversity and progressivism - remain and we won't be deterred as we continue to attract world class business to communities across New York State," concluded Governor Cuomo.

After over a year and a half of politically courting Amazon's HQ2 to New York, in a deal that promised over 25,000 new high wage jobs for New York, along with creating another 82,000 indirect jobs with an economic impact topping over $35 billion dollars, the State's Governor was understandably disappointed at yesterday's news.

The Real Estate Board of New York's president John H. Banks also released a prepared statement.

"New York's renaissance over the past forty years has been due in part to our ability to work through difficult issues that have led to record population and job growth and the emergence of our city as a true global capital. It's unfortunate that we have lost out on an opportunity to create tens of thousands of jobs for city residents and generate billions of dollars in tax revenue to fund vital services including infrastructure improvements for transportation, schools, and open space. Nevertheless, New York City is still open for business and will retain its status as a world class center for tech and innovation," says Banks.

A number of local real estate brokers, developers and property speculators also had their dreams dashed this week with Amazon's decision not to come to New York.

Hundreds of local properties have either gone under contract or have already traded hands since announcing Amazons move to Long Island City last November 13, 2018. Some local experts estimate the blow to the local real estate market will be into the hundreds of millions of dollars of lost property values in the next 12 months.

Regardless of New York, Amazon's other two other HQ2 locations in Virginia and Tennessee are still slated to move forward as planned.

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