Amazon recently announced plans to build a second headquarters. The Texas commercial real estate market has shown robust growth for many years, will the states growing economy is enough to attract Amazons new headquarters?
Amazon has a long list of benchmarks before any city can be considered for its new headquarters. The metro area must have a population that exceeds 1 million. Any prospective location must have on site mass transit, be within 45 minutes of an international airport and have immediate access to a major highway or arterial road. Amazon also wants prospective cities to have a vibrant student population and excellent educational institutions. A number of metros in Texas meet Amazons guidelines, but Dallas and Austin stand out among the crowd as the most likely locations for Amazons new headquarters in the state.
Dallas has a number of distinct advantages among Texas cities in the competition for the new Amazon headquarters. The Dallas Regional Chamber and the Mayor have already taken concrete steps and are already scouting locations for the proposed headquarters. Only San Francisco exceeds Dallas in terms of high tech talent. The University of North Texas at Denton is already a major recruitment base for Amazon, offering the nation’s only digital retail degree. Dallas talent base, low-cost of living and excellent infrastructure are sure to be positive factors Amazon will consider before it makes its decision.
Austin is also on the short list of candidates for the new headquarters. The city offers a burgeoning student population, with more than 425,000 college students residing in the immediate area. Other tech-giants have found the region favorable. Apple, Google, Facebook and Samsung already have established their offices in the city. Amazon may consider the proximity to Whole-Foods Headquarters as the biggest attraction for building its new headquarters in Austin. Amazon just bought the grocery chain and the opportunity to have two headquarters in one city makes Austin very likely to win the bidding war for the new headquarters.
Other Texas cities are also competing for the Amazon headquarters. Demonstrating just how robust Texas’ commercial real estate market actually is.
Apart from Dallas and Austin, other Texas cities are throwing their hats in the ring. 10 Amazon fulfillment centers, with 10,000 employees are located in the Fort-Worth Area. The cities recent airport expansion enables cargo transport to Asia, a real benefit Amazon may consider. Houston has also expressed interest in the new headquarters. Houston has plenty of centrally located and vacant office space available. But the city, even with a significant student population, doesn’t have a strong tech-scene when compared to Dallas. San Antonio is also making a bid, but the city may not have sufficient space downtown and the airport lacks some of the capacity Amazon has requested.
Texas’ commercial real estate market is one of the strongest in the nation. But how will Texas fare against other states?
Cities in Texas of course want the prestige of being chosen for the new Amazon Headquarters, as well as the potential economic benefits Amazon promises. But Texas isn’t the only state or area being considered. Cities in Texas are still in competition with potentially more prestigious cities like San Francisco, Boston or New York. Amazon executives have already put Boston at the top of the list, according to Bloomberg. However Boston and other densely populated cities may be too expensive for many low level Amazon employees. Texas and cities like Austin and Dallas stand out due to their low cost of living and their business friendly environments.
Dennis Dahlberg
Broker/RI/CEO/MLO
Level 4 Funding LLC Private Hard Money Lender
Arizona Tel: (623) 582-4444
Texas Tel: (512) 516-1177
Dennis@level4funding.com NMLS 1057378 | AZMB 0923961 | MLO 1057378
22601 N 19th Ave Suite 112 | Phoenix | AZ | 85027
111 Congress Ave |Austin | Texas | 78701
About the Author: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 42 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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