Amazon Splits HQ2 Between New York and Washington

Amazon will build new offices in New York City and Arlington, Virginia, according to Bloomberg. The announcement has ended months of jockeying between potential locations across the country vying for a $5 billion investment that promises 50,000 high-paying jobs over almost two decades.

The anti-climactic ending to a more than year’s-long search shows Amazon thinks it’s better to tap multiple labor markets for future growth rather than try to house everyone in one city. Amazon also said it will create more than 5,000 jobs in Nashville, Tennessee, at a new operations center that’s responsible for fulfillment, transportation, supply chain and other activities.

The sites in Long Island City, Queens, and in Arlington, will be a boon for the New York and Washington D.C. metro areas and highlights Amazon’s willingness to target big talent pools with pricey payroll over smaller markets offering lower costs of living. It’s a disappointment for the 18 other cities, including Toronto and Chicago, many of which offered billions of dollars in tax breaks to lure the world’s largest internet retailer.

In its release, Amazon said New York will get more than 25,000 full-time, high-paying jobs, about $2.5 billion in Amazon investment; 4 million square-feet of energy-efficient office space with the chance to expand to 8 million square feet; and an estimated incremental tax revenue of more than $10 billion over the next 20 years. Amazon will receive $1.5 billion if it meets its job-creation goals.

Arlington will benefit from the same number of jobs, investment and office space as Long Island City. The site will also benefit from an estimated incremental tax revenue of $3.2 billion over the next 20 years as a result of Amazon’s investment and job creation. Amazon will receive $573 million in incentives if it meets the job-creation pledge.