JBG Smith Announces Blockbuster Amazon Deal

ARLINGTON, VA -- It's official: developer JBG Smith, which owns and operates most of Crystal City -- which Amazon chose last year as the location of its second headquarters -- has just signed a deal with the online retail giant for 4.6 million square feet of office space.

JBG Smith announced in a statement that it has executed three leases and two Purchase and Sale Agreements with Amazon affiliates as part of the company's move to "National Landing," an area that includes Crystal City as well as parts of Pentagon City and Potomac Yard in Alexandria.

Amazon announced in November that it had chosen the area as well as a neighborhood in New York City, which were to split the proposed 50,000-job, $5-billion second headquarters until the New York deal suddenly fell through. Critics in New York had questioned Amazon's treatment of its employees and an enormous proposed tax giveaway of as much as $3 billion in exchange for only promises of 25,000 jobs.

The process in Arlington has been much smoother for Amazon. This newest deal would earmark 4.6 million square feet of office space for development.

“We are pleased to report that our partnership with Amazon at National Landing is moving full steam ahead,” said JBG SMITH CEO, Matt Kelly, in the statement. “With the execution of these agreements and recently legislated state and local government commitments to invest approximately $2 billion in the region’s transportation, education and housing infrastructure, we are ready to welcome Amazon’s first National Landing employees in the coming months.”

The Virginia General Assembly approved incentive legislation in January that would fund $195 million toward critical infrastructure improvements, including "second entrances to the Crystal City and to-be-constructed Potomac Yard Metro stations, a pedestrian connection linking National Landing to Reagan National Airport, an expanded VRE station and substantial improvements to Route 1," the statement adds.

Virginia reportedly has pledged roughly $800 million in incentives to Amazon in exchange for the move.

"National Landing is the newly defined interconnected and walkable neighborhood that encompasses Crystal City, the eastern portion of Pentagon City and the northern portion of Potomac Yard," the statement adds. "Situated across the Potomac River from Washington, DC, National Landing is a well-located urban community known for its adjacency to Reagan National Airport and walkable environment featuring offices, apartments and hotels. JBG SMITH currently owns 6.2 million square feet of existing office space, 2,850 units of existing multifamily space, and controls 6.9 million square feet of additional development opportunities in National Landing, excluding Amazon’s land purchase."