After it was revealed that Amazon had signed a 335,000 square-foot office lease at 410 Tenth Avenue, opponents of the proposed Long Island City HQ2 deal took a foolish victory lap.
- Be Smart: As part of the $3 billion subsidy proposal, Amazon intended to develop approximately 4 million square feet of new office space in Queens. Moreover, the tech giant was required to create 25,000 jobs to unlock the full package, NYMag wisely noted. This small office lease in an existing building will only support 1,500 jobs in Manhattan.
- Bottom Line: There are valid arguments against the initial subsidy package; however, claiming that this small lease is a replacement of the proposed HQ2 deal without necessitating tax incentives is absurd.