Real Estate Stocks Reckon With Amazon's HQ2 New York Breakup
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Real estate investment trusts are reacting to the news that Amazon.com Inc. is pulling out of its plan to build a headquarters in New York City after backlash from some residents and politicians.
REITs with exposure to the city fell after the news. SL Green Realty Corp., Vornado Realty Trust and AvalonBay Communities Inc. saw some of the largest drops, as the three companies are among the most exposed to the city’s commercial and apartment markets, according to Bloomberg Intelligence analyst Jeff Langbaum. The companies were hoping to benefit from the demand that would come from Amazon hiring as many as 40,000 workers over the next two decades, with an average salary of $150,000.