Construction Halted on Amazon’s HQ2

The company is pausing construction on its much-anticipated second headquarters in Arlington, Virginia.

1 minute read

March 6, 2023, 6:00 AM PST

By Diana Ionescu @aworkoffiction

On the heels of massive job cuts, Amazon has halted construction on its sprawling ‘HQ2’ campus in Arlington, Virginia. According to an article by Matt Day in Bloomberg, the first phase of the project, which is almost complete, will go forward as planned. The moratorium affects three proposed 22-story office towers and the designy Helix building. 

According to an unnamed source, “Amazon and JBG Smith Properties had for months been discussing modifying the PenPlace plans, in part to speed construction of some elements to meet commitments the company made to provide community benefits.” Now, “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.”

The complex, first announced in 2017, created a furious bidding war between cities hoping to attract jobs and economic development. Arlington and other Virginia entities pledged $800 million in tax breaks and infrastructure improvements, ultimately winning the project and a projected 25,000 jobs. “But the construction moratorium will delay the online retailer’s full arrival at its biggest real estate project, and could create headaches for local developers, as well as construction and service workers banking on Amazon’s rapid expansion.”

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