Amazon's plans to locate its new headquarters, the "HQ2," in New York City recently went bust -- and with it went a lot of real estate hopes in Long Island City and Queens.
Amazon had been widely expected to hire 25,000 people. This would create a need for housing, restaurants, grocery stores and more. In anticipation, investors were already leaping ahead with real estate purchases. One company sold 150 apartments in a single week -- which is 15 times greater than normal. Many Amazon employees were also rushing to buy -- with some purchasing homes as far back as last November.
Land prices had already shot up 25 percent after Amazon initially announced it's original intentions. It's likely that many buyers -- both private and commercial -- were hoping to their purchases made before property rates soared any higher.
Now, unfortunately, investors and private buyers alike may be stuck with properties that are mortgaged for more than they are worth. Amazon's decision to locate elsewhere is now driving property rates in the area right back down again.
Area realtors, however, remain optimistic about the area's future. Long Island City real estate sold well prior to Amazon's announcement and many apartment developments were springing up. Despite the loss of Amazon, 6,400 more rental units are being planned. Economists predict that the momentary downturn in the real estate market will be just "a bit of whiplash," according to one, and not out of the ordinary for investors and developers.
Just the same, those who suffer from financial difficulties as a result of their investment in commercial real estate property may find relief with some experienced assistance. A real estate attorney can help