Should Amazon choose Atlanta for its $5 billion HQ2, the impact on the local real estate market could be even more profound than the 1996 Olympics.
The Olympics attracted new talent from other cities, transformed the region’s housing market and fueled a commercial real estate construction boom that lured many headquarters relocations. Metro Atlanta’s population has nearly doubled.
Another boom would surely occur if Amazon HQ2 comes to town, bringing 50,000 jobs with salaries averaging $100,000. Atlanta is among 20 cities under consideration, with a decision expected soon.
For context, Coca-Cola and its bottlers have about 7,500 employees in Atlanta. Winning Amazon HQ2 would be like adding six more Coca-Colas to the local economy.
Major selling points by city and state officials? A highly educated local workforce, direct flights to cities across the globe, affordable housing and rich economic incentives.
Those are some of the reasons Porsche executives cited when they chose Atlanta for a new $100 million headquarters after considering 70 locations, while Mercedes-Benz USA CEO Stephen Cannon said relocating to Atlanta would help “achieve the sustained, profitable growth.”
Beyond the direct boost from Amazon HQ2, Atlanta’s real estate market would also benefit from:
- Dozens of other companies opening offices in close proximity
- Expansion in coding and programming, creative and digital marketing, payment processing, IT security and other sectors that cater to Amazon
- More transportation and logistics jobs
- A wave of new startups with Amazon alums inevitable branch out and start their own ventures
All of that requires real estate.
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