All government incentives and investment packages for Amazon’s HQ2 project at JBG SMITH’s National Landing assets in Northern Virginia have been approved. Back in November, Amazon selected JBG SMITH as partner to house and develop its new headquarters location at National Landing. Amazon is expected to lease 537,000 square feet of existing office space, starting at 241 18th St. and 1800 S. Bell this year. Following that will be 1770 Crystal Drive in 2020.
The Arlington County Board approved the agreement, which will provide Amazon with up to $23 million over 15 years if the company creates at least 25,000 jobs and occupies 6 million square feet of office space in the county by 2035. The deal is estimated to be fully paid by collecting a portion of the increase in hotel tax revenues anticipated as a result of the headquarters. The county will receive $14 for every $1 that Amazon earns in performance-based incentives, according to Arlington Economic Development Commission. The additional tax revenues generated by the headquarters will be used to invest in improvements to the county’s schools, affordable housing, parks and transportation network.
In January, the Virginia General Assembly approved to provide Amazon with up to $750 million in performance-related incentives, as well as committing $250 million towards Virginia Tech’s planned $1 billion Innovation Campus that will also be located within National Landing.
National Landing encompasses Crystal City, the eastern portion of Pentagon City and the northern portion of Potomac Yard. Located across the Potomac River from Washington, D.C., National Landing is adjacent to Reagan National Airport and offers quick access to offices, apartments and hotels. JBG SMITH owns 6.2 million square feet of office space, 2,850 multifamily units and controls 7.4 million square feet of additional development opportunities, excluding Amazon’s proposed land purchase, within National Landing.
“The Arlington County Board’s unanimous support for Amazon’s HQ2 project represents a major milestone in the collective effort to establish National Landing as a global hub for innovation and technology,” said Matt Kelly, CEO of JBG SMITH, in a prepared statement.
Amazon is also expected to purchase JBG SMITH’s Pen Place and Met 6, 7 and 8 development sites in Pentagon City. There, the firm expects to develop 4.1 million square feet of modern office space for Amazon. JBG SMITH will serve as developer, property manager and retail leasing agent for the project.
Rendering courtesy of JBG SMITH