February 14, 2018
CCIM Institute debuted its Commercial Real Estate Insights series, in partnership with the Alabama Center for Real Estate. As part of its 1Q18 Commercial Real Estate Insights Report, the organizations’ chief economist K.C. Conway took a deep dive into the site selection process for Amazon’s HQ2.
Conway notes traditional industries that communities relied on for the past three decades for job and revenue growth, such as retail and financial services, are being replaced. He points to the Amazon HQ2 RFP as an early blueprint for how this process will play out, including the opportunity for 238 cities to illustrate what makes them attractive.
With its HQ2 RFP, Amazon has probably altered how corporate relocations and expansions will occur in the next decade, Conway points out. A close reading of the RFP reveals that the search seems less about incentives, and more about workforce solutions and corporate culture fit. Other rising and transformative technology companies may use similar criteria for future site selections.”
Conway says, “Amazon’s HQ2 site selection process is more than just a point along a timeline charting its evolution as one of the world’s most transformative companies. It is a reset button that will likely have implications far beyond Amazon.”
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