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Long Island City real estate will be fine without Amazon HQ2



Buyers looking for space in Long Island City felt pressured to lock in quickly when the Amazon move seemed imminent.

"People were less negotiable. They were firmer at their rates," said Carlos Rodriguez, who had been seeking an investment property in Long Island City with compass agent Natsuko Ikegami before the Amazon announcement. He estimated listing prices shot up at least five percent, a price he "was very willing to pay" for the perceived value Amazon would bring to the neighborhood. He had agreed to pay over $ 1 million for a two family home in a nearby neighborhood.

But when Amazon backed, Rodriguez said he "felt it fundamentally changed the prospect of the area." Rodriguez asked the seller to shave $ 40,000 from the price, though the three percent often turned off in the form of closing costs. He felt that the price change was justified by both the results of a house inspection and the Amazon news, but the sellers turned it down. Rodriguez is still looking to buy in the area, albeit with a different approach.

"I'm a little more patient now," he said, adding that he is willing to wait six to twelve months to move on the right property, instead of one to two months, he was targeting when Amazon announced his traits. "There was a bit of a sense of urgency before."

However, Jose Arriola, looking for a property where his budding family could grow, having spent five years in Long Island City already.

"When we first moved in, there were not many local businesses. There were maybe two coffee shops," Arriola said. Now, "it feels like there is a new building coming up every month."

Arriola began his condo hunt with compass agent Jessica Meis about a month before Amazon announced plans to move to the area. When Amazon chose Long Island City for its new office, he noticed a difference immediately.

"What we saw was a shift in going to an open house where it might be my wife and I, perhaps another family, having to book an open house maybe a month in advance," says Arriola. put pressure on us to find a new place. It didn't make us look elsewhere because we like Long Island City and we wanted to stay there. "

He said he didn't see an uptick at listing prices, but felt that Amazon's plans insured sellers they could stand back When it comes to negotiations.

"They wouldn't give you any concessions," Arriola said, entering into a contract in December at a two-room apartment with a pool, doorman and rooftop at a $ 1

million ballpark price , just weeks after Amazon announced its move.

"I feel like without the Amazon news, maybe we would have waited a little longer," said Arriola and admits he may have had more wiggle room in negotiations. But he understands, "If we waited a little longer and Amazon never pulled out, maybe we would never have been able to find an apartment we liked."

Rodriguez is still aware of the risks he will face as a property owner, such as the possibility of a financial downturn, which he believes would have been reduced if Amazon were stuck on his plans.

"I just want to close the deal," Arriola said. "I want to move into the new apartment and just keep living."

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See:
Here's what a luxury NYC real estate agent thinks of Amazon HQ2


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