Breaking DC Tech Ground in the Wake of Amazon's Arrival

November 23, 2018

Amazon's recent announcement to open part of its HQ2 here in the DMV has certainly created a local buzz. Resultant discussion topics have included everything from the mass influx of new jobs, to the revitalization of the Crystal City area (now branded as National Landing), to welcomed economic diversification within a region whose primary industry has predominantly and historically been tied to the US Federal Government.


Residential real estate is another topic that has been brought to the local forefront. How much will home and rental prices increase? Will both the rental and home buying markets fluctuate/increase at the same time or will one see change before the other? How far will the housing ripple effect extend from HQ2's epicenter? 


Whatever the answers, the situation has got us thinking that Amazon's move will not only make it more unattainable for families and individuals to enter the housing market, but also for small businesses and start-ups trying to break commercial real estate grounds here. Even before Amazon's HQ2 announcement, the investment required for technology companies to open a dedicated, federal-focused business unit was already significant. Between the high cost and added risk of supporting an ecosystem that abides by separate rules and principals from those of the pure private sector, many amazing technology companies have purposely opted to not do business here.


Above said, we want to close out this post by reminding readers of our charter to help small software companies and start-ups enter the DC market. Once our clients eventually close business, the government often goes on to become a steady, loyal, long-term buyer. In other words, our clients gain noticeable revenue increases with minimal up-front investment and significantly curtailed risk exposure.


Like many things in life, the hardest part is just getting the foot in the door - we help technology clients do just that and when we finish, investing in local real estate becomes achievable for more than just Amazon-scale companies. 

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