Editor's note: This is the second part of a three-part series analyzing real estate exposure to the finalist cities in the running for Amazon's second headquarters. This installment focuses on markets in the Northeast. Click here to view our analysis of finalists in the mid-Atlantic and Southeast U.S.
Amazon.com Inc.'s search for a second headquarters location, which would bring with it up to 50,000 high-paying jobs, prompted cities around the U.S. to submit bids to host the e-commerce giant.
Amazon whittled down the HQ2 contenders to 20 finalist cities, five of which are in the northeast U.S.: Boston; Newark, N.J.; New York; Philadelphia; and Pittsburgh. Toronto also made the list.
SNL-covered real estate companies own 4,598 properties in the greater metropolitan areas surrounding these cities, of which REITs specifically own 4,383.
The multifamily sector in particular is expected to see a boost where the new headquarters lands, as an influx of young, relatively well-paid workers look for homes.
Among the northeast markets, SNL-covered real estate companies own the most multifamily properties — 175 — in the New York-Newark-Jersey City, NY-NJ-PA MSA, the largest metro in the U.S. at more than 20 million residents. AvalonBay Communities Inc. owns the most multifamily properties in the market among SNL-covered real estate companies, with 44 properties totaling 12,690 apartment units. Other companies with large multifamily exposure to the metro area include Equity Residential with 37 multifamily properties and Apartment Investment and Management Co. with 20 properties.
SNL-covered multifamily companies have little exposure to the Philadelphia-Camden-Wilmington, PA-NJ-DE-MD and Pittsburgh, PA MSAs, with only 22 multifamily properties among the two markets. Among SNL-covered real estate companies, Aimco owns the most multifamily properties in the Philadelphia MSA, with seven properties totaling 3,371 apartment units.
Diversified REIT Forest City Realty Trust Inc. owns five multifamily properties in the Philadelphia metro with 1,382 units. Preferred Apartment Communities Inc. owns the sole SNL-covered multifamily property in the Pittsburgh MSA.