Question: What effect will the recently announced move of Boeing’s Headquarters to Arlington have on our real estate market?
Answer: I got this question from quite a few people over the past week, but it wasn’t until my Mom asked that I decided it needed to be this week’s topic!
The news itself, Arlington becomes Boeing’s Global Headquarters, seemed to be another massive shock to our real estate market just a few years after Amazon’s HQ2 announcement sent demand through the roof. Fortunately or unfortunately (depending on whether you’re on the buying or selling side), that is not the case and it’s unlikely to have a material effect on the housing market in the near or mid-term.
For now, Boeing is not planning much of a change in their workforce in Arlington or Chicago, where they’re currently headquarter. The CEO and CFO offices will move to Arlington, but that seems to be the extent of the immediate workforce changes planned.
It’s possible that in some one-off scenarios, this news will give more confidence in our local housing market to some buyers and investors and result in a willingness to make a better offer or an offer they otherwise may not have. However, it’s unlikely these cases will cause any sort of noticeable trend in an already thriving real estate market.
I do expect a longer-term positive effect (4-5+ years out) on the Arlington real estate market for a few reasons:
- It’s probably a safe bet to assume that future workforce growth, office expansion, and community investment will focus in Arlington
- As with Amazon, smaller companies and start-ups in the Boeing orbit will be more likely to carve out space in and around Arlington
- Hosting powerful and diverse corporate name brands like Boeing, Amazon, and Nestle significantly increases the likelihood of Arlington (and surrounding markets like Tysons and Reston) landing at the top of the list for other Fortune 500/1000 companies to relocate their headquarters here. In my opinion, this is the most important effect of Boeing’s Global HQ announcement.
As we grapple with some difficult and unique market forces – supply/demand disconnect, surging interest rates, soaring inflation, plummeting stock-market, and signs of a potential recession – news like Boeing’s choice to move its Global HQ to Arlington is an important reminder of the long-term strength of our housing market and its resilience in the face of economic headwinds.
If you’d like to discuss buying, selling, investing, or renting, don’t hesitate to reach out to me at Eli@EliResidential.com.
If you’d like a question answered in my weekly column or to discuss buying, selling, renting, or investing, please send an email to Eli@EliResidential.com. To read any of my older posts, visit the blog section of my website at EliResidential.com. Call me directly at (703) 539-2529.
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Eli Tucker is a licensed Realtor in Virginia, Washington DC, and Maryland with RLAH Real Estate | @properties, 4040 N Fairfax Dr #10C Arlington VA 22203. (703) 390-9460.