Amazon to build $5 bln HQ

Amazon is looking for a location to build its second headquarters in North America that would cost more than $5 billion and house up to 50,000 staff. Fred Katayama reports.

(REUTERS, AMAZON) – Amazon is looking for a place to build a second headquarters in North America. It’s ready to invest $5 billion in a command center employing 50,000 workers.

The company seeks a metropolitan location with more than one million people, an international airport, good education and mass transit.

It’s now taking proposals from local governments.

It will chose a new location based on incentives it can get, such as land, tax cuts, and relocation packages.

In return, it offers a big source of revenue from property taxes and income taxes from its army of highly-educated, highly-skilled, and well-paid workers.

Marcus Moufarrige, chief operating officer at Servcorp, a company that sells office space around the world, says Amazon’s new investment has a potential to change the commercial real estate model.


“They are saying it’s going to be an equivalent headquarters, and that the executives are going to be able to choose whether they operate in Seattle or from wherever their new headquarters is going be. That’s says a lot about the mobile workforce, and the ability for the headquarters to be split across jurisdictions. So, that really means that they are using a platform or they are going to use some sort of system so it will run like one organism. And, I think, there is a lot more technology that is going to come into place, enabling business to do this, not just in different parts of the country, but, potentially, around the world as well.”

More than 50 cities in North America meet Amazon’s requirements. Likely contenders could include midwestern states, where Amazon has many of its warehouses. Texas could also be on the list. It’s the base of the Whole Foods Market chain Amazon bought earlier this year. The company will make a decision on the new headquarters location next year.