- Amazon.com Inc AMZN is indefinitely pausing construction on its second headquarters near Washington.
- JBG SMITH Properties JBGS, the developer working on the project, dropped as much as 8% to a record low, Bloomberg reports.
- Amazon and its developers had at one point considered starting to dig that block's foundations and underground parking garage immediately following the vote.
- Amazon and JBG Smith Properties had for months been discussing modifying the PenPlace plans to speed construction of some elements to meet commitments the company made to provide community benefits. In an extended delay, Amazon will likely have to modify those arrangements.
- Plans for the site approved by the county require the company to meet construction and permitting milestones by April 2025 unless the officials grant an extension.
- Amazon expects roughly three years between groundbreaking and the arrival of the first employees in a completed office tower.
- John Schoettler, Amazon's real estate chief, confirmed the pause and commitment to Arlington, Virginia, whereby in 2030, Amazon has committed to spending $2.5 billion and hiring some 25,000 workers. But the construction moratorium will delay the online retailer's arrival at its most significant real estate project.
- Amazon multiplied during the pandemic but has started reassessing real estate projects to reflect the likelihood of remote work.
- In 2022, Amazon froze most corporate hiring and began a round of layoffs totaling about 18,000 workers.
- Price Action: JBGS shares traded lower by 5.22% at $16.20 on the last check Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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