Western Real Estate Business

OCT 2017

Western Real Estate Business magazine covers the multifamily, retail, office, healthcare, industrial and hospitality sectors in the Western United States.

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50 • October 2017 • Western Real Estate Business www.REBusinessOnline.com "We expect HQ2 to be a full equal to our Seattle headquarters," he said during the announcement. "Amazon HQ2 will bring billions of dollars in up-front and ongoing investments, and tens of thousands of high-paying jobs. We're excited to find a second home." Bezos went on to explain there were a few requirements and preferences that cities hoping to se- cure the new busi- ness should try to meet before submit- ting their Request for Proposal (RFP), which is due Oct. 19. Amazon is look- ing for a metropolitan area with more than one million people that boasts a stable and business-friendly environ- ment. It is considering both urban and suburban locations with the potential to attract and retain strong technical talent. Amazon also emphasized its pen- chant for "communities that think big and creatively" that have a "simi- lar layout to Amazon's Seattle cam- pus." Naturally, the online retailer would also like any potential sites to be development-ready and able to ac- commodate its timeline. In addition to this, Amazon is looking for a site that is within 30 miles of a population center; 45 minutes of an international airport; and 1 to 2 miles of a major highway and/or arterial roads. The company also wants its new campus to feature direct access to rail, train, subway/metro and bus routes. The Amazon Effect This opportunity has spurred the interest of cities the continent over. While there has been no talk of Mexi- co, cities from Montreal to Minneapo- lis, Pittsburgh to Portland, Ore., and Los Angeles to Las Vegas have de- clared their desire to throw their hats into the ring — and for good reasons. One of those reasons is that Amazon seems to be on an upward trajectory that shows no signs of slowing down any time soon. Amazon.com sales were up 25 percent, to $38 billion, in the second quarter of 2017. Operat- ing cash flow increased 37 percent to nearly $18 billion for the 12-month pe- riod that commenced on June 30, 2016. This is compared to $13 billion for the previous 12-month period, accord- ing to the company's second quar- ter financial results. Common shares outstanding plus shares underlying stock-based awards totaled 502 mil- lion on June 30, 2017, compared with 495 million one year ago. Net sales for Amazon's third quar- ter are expected to be between $39.25 billion and $41.75 billion, or to grow between 20 percent and 28 percent compared with the third quarter of 2016, the report notes. Bezos may be proud of his current team and their ac- complishments, but he makes it clear much more is on the horizon for this internet darling. "Our teams remain heads-down and focused on customers," he said during the report. "It's energizing to invent on behalf of customers, and we continue to see many high-quality op- portunities to invest." The latest investments included hir- ing more than 30,000 new employees, opening three new Amazon Books stores, migrating more than 7,000 da- tabases and holding its third-annual Prime Day, which signed up more Prime members than ever before. Prime Day 2017 is just one example of Amazon's reach. Held over a 30- hour period between July 10 and July 12, this year's Prime Day was the big- gest global shopping event ever for Amazon. The holiday was not only cause for celebration for Amazon and shoppers who scored great deals, but for the hundreds of thousands of small businesses and entrepreneurs who participated in the global event, selling more than 40 million units. Kelly Fedio, founder of One Savvy Life, a line of beverage lifestyle ac- cessories, outdoor recreation, leisure products and more based in Redondo Beach, Calif., is one of the small busi- ness owners basking in the Amazon Effect. "Being able to sell on Amazon has been paramount in driving massive amounts of sales and customer visibil- ity, allowing us to build brand aware- ness where customers shop," Fedio says. "Since we started in 2014, we have successfully introduced several products to customers on Amazon, in- cluding our original best-selling infu- sion water bottle. Amazon has played an instrumental role in helping us launch our small business and grow into an enduring brand." Off to the Races Stories like Fedio's are a key part of Amazon's new expansion efforts. The company plans to invest $5 billion in HQ2's new construction, but is look- ing for a little wining and dining first before making its new home official. With more than 380,000 employees worldwide, Amazon knows it's the prettiest girl at the ball. The company ranks No. 1 on Fast Company's Most Innovative Com- panies, No. 2 on Fortune's World's Most Admired Companies, No. 1 on the Harris Poll's Corporate Reputa- tion survey, and No. 2 on LinkedIn's Most Desirable U.S. Companies list. Amazon was also recently included in the Military Times' Best for Vets list of companies committed to providing opportunities for military veterans and was awarded the 2017 City Maker award by the Downtown Seattle Asso- ciation. Full-time Amazon employees re- ceive competitive hourly wages and a comprehensive benefits package, including healthcare, 401(k) and com- pany stock awards starting on their first day of employment. Amazon also offers regular full-time employees maternity and parental leave benefits. HQ2 will house up to 50,000 new full-time employees with an aver- age annual total compensation of more than $100,000 over the next 10 to 15 years once the project is off the ground. Amazon employees also have access to innovative programs like Ca- reer Choice, where it will pre-pay up to 95 percent of tuition for courses re- lated to in-demand fields, regardless WESTERN CITIES ROCKED BY AMAZON'S AMAZING OPPORTUNITY AMAZON from page 1 Amazon has come a long way since its first non-descript office building in the Pacific Northwest. Bezos

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