February 26, 2019
When Amazon announced plans to build a campus in Long Island City, the e-commerce giant’s arrival was seen as a win for the neighborhood. For landlord Savanna, it would have meant an Amazon occupancy of about one million square feet at One Court Square while the campus was under construction.
Yet, Amazon’s decision earlier this month to scrap plans for an LIC presence is “far from a devastating blow,” DBRS’ Gwen Roush and Erin Stafford write in a commentary. “LIC had already been characterized by exponential growth in multifamily and other commercial development, as well as an historically low unemployment rate,” they write.
Savanna will see One Court Square’s sole tenant, Citi, downsize to about 400,000 square feet in May 2020. However, Roush and Stafford write, “the property remains well positioned to benefit from the recent development boom in LIC that has brought significant investment and population to the area.”
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