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Blog | LYNK Capital

How Amazon’s HQ2 Could Affect Your Rehab Project

Posted on April 01, 2018

In 2017, Amazon announced that it will build a second headquarters somewhere in the United States. The tech giant already occupies nearly 10 million square feet of office space in Seattle, WA and employs approximately 45,000 people in that area.

In an effort to win Amazon’s HQ2, cities all over the nation submitted their requests and proposed incentives for review.  The new headquarters will bring the winning city approximately 50,000 jobs and is sure to boost its local economy in many ways including increases to wages and real estate prices.

The economic impact that Amazon has had on the Seattle area housing market is astounding - in fact, real estate prices have soared faster than any other city in the nation since Amazon opened its doors in the 1990s.

Could the winner of HQ2 find themselves with a similarly robust housing market?  And if so, what effect could that have on your potential rehab project?  Here’s a look at four of the finalist cities in LYNK Capital's lending area:

1.  Raleigh, NC


While Raleigh is listed as a finalist city for HQ2, it is actually included as part of the Research Triangle (Triangle) along with the cities of Durham, Cary and Chapel Hill.  The Triangle is home to several top universities, producing a talented workforce.

Amazon's Effect on Your Rehab Project

Currently, Raleigh is affordable for buyers and renters, with average home values of $230,000 and average rent of $1,400, according to Zillow.  Finding a rehab project close to a potential site of HQ2 could give your resale value a boost, as it reduces the buyers’ travel time.  Public transportation is available in the Triangle, but is not as robust as some of the other finalist cities.

2.  Miami, FL


Miami may be a bit of an underdog amongst the other finalist cities due to its smaller pool of tech talent, but it still has much to offer.  With plenty of coastal access and a bustling international airport, Miami is a leading distribution center.

Amazon's Effect on Your Rehab Project

House rehabbing and flipping is a big business in South Florida.  The competition in this industry could see a significant increase with HQ2.  As more high paying jobs are added to the area, rehab projects could become even more abundant.  To help your rehab project stand out amongst the competition, work with someone who knows the local market, including top neighborhoods and local design trends.

3.  Atlanta, GA

Many news outlets have ranked Atlanta among the top picks for HQ2.  Atlanta has one of the lowest housing costs of all finalist cities and is already home to large corporate headquarters such as Home Depot and Coca-Cola.

Amazon's Effect on Your Rehab Project

According to Zillow, the average home value in Atlanta is currently $221,000.  Values have been steadily rising year-over-year, which already makes Atlanta seem like a good candidate for a rehab project.  The presence of HQ2 would obviously impact values even further; however, traffic in the city is rated among the worst in the nation.  Carefully considering the location of your rehab project to minimize commute time could prove more valuable than an extensive rehab of a property further from HQ2.

4.  Washington D.C.

For obvious reasons, being close to so much political influence could be to Amazon’s advantage.  D.C. is already flush with top tech talent and is very close to Amazon’s large data center in Northern VA.

Amazon's Effect on Your Rehab Project

Washington D.C. is a small geographical area, covering only 68.34 square miles.  To find affordable properties suitable for your rehab project, you will likely need to look outside of the city, and in neighboring states.  Consider the location of your rehab project carefully and look for properties along major metro lines.  Even if your rehab project is a considerable distance from HQ2, easy access to public transportation could boost its value.

Regardless of where HQ2 ends up, one fact remains:  a rehab project needs to be well thought out and well funded.  For information on the loan programs that LYNK Capital available for your rehab project, contact us today or get started on your loan pre-approval.  

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This entry was posted in Fix & Flip Academy

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