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Denver Continues To Attract Amazon HQ2 But Still Has More Work To Do

denver continues to attract amazon hq2 but still has more work to do

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Published date:

January 26, 2018

Last updated date:

January 26, 2018

By Manny Manriquez

While there may be a lot of mixed feelings as to whether Denver would be a good fit for the new Amazon second Headquarters, Amazon no doubt has its own ideas as to why it would consider Denver for its new location. Even the New York Time’s agreed Denver is the best choice.

Amazon’s Familiarity With Colorado

It began when Amazon opened up a sorting center in Colorado last year. The objective was to allow Amazon to increase their trucking delivery speed to the surrounding post offices.

Amazon then followed with the decision to open an Amazon fulfillment center in Aurora that is certainly not considered to be small in size or stature. It comes in at one million square feet and is meant to stock larger Amazon items.

During the announcement of the opening of this new facility there were indicators from Amazon that they intended to increase benefits to their prime market. Doing this led them to the expansion of the logistics network in Colorado.

Amazon was not prepared to take their eyes off the viability of using Denver for other needs which was proven with their plans to open a robotics fulfillment center in Thornton. This time the space will cater to housing the smaller Amazon items.

On these three occasions, Amazon has given detailed thought and consideration to the benefits of operating a portion of their business out of Denver. They have done their homework prior to making these moves. Analytical data and research that was conducted prior to these decisions will most likely play a role in the decision making as to whether or not Denver will be chosen for the second headquarters of Amazon.

It’s All About The Incentives

Some may raise the question as to whether factors aside from Demographics and the right location enticing Amazon. These incentives still loom across the country. Colorado’s Enterprise Zone is one such perk that should help.

This is a different incentive that entices businesses to relocate here by offering them an impressive selection of tax credits, including $1,100 for each new job opening, a 3% tax credit on equipment purchases and job training credits.

Although Denver is being considered by Amazon it sits in a list of top twenty so nothing is set in stone. Denver is going to have to prove its worth to Amazon above what it has been able to do to date.

Both Sides Of The Argument

The mixed feelings about Amazon choosing Denver for its second headquarters are diversified. Some feel that the infrastructure cannot handle the traffic issues that would only compound. Others feel that the number of job openings that the new Amazon headquarters would create trumps any negatives that may be raised.

From the real estate point of view the new Headquarters could drive the market into a seller's market because the housing market is already sitting at a inventory that is being classed as being close to a record low. So for buyers this may not be ideal, but for sellers it is a positive.

Whichever side of the HQ2 argument you land on, there’s sure to be plenty more to discuss in the coming months. The only guarantee is that the hype and fanfare will only continue to grow leading up to the big announcement.

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