Guest Author: Emila Smith
Cincinnati wasn’t chosen as the base for Amazon’s second headquarters. However, the air hub based in Cincinnati is still drawing in businesses and citizens looking for job opportunities. In this guide, we will discuss the top companies moving to Cincinnati to be closer to the Amazon hub and the effects this is having on the commercial and residential real estate markets.
Keep reading to learn about the effects of the Cincinnati Amazon hub on business and real estate. Amazon’s arrival can affect house prices, the job market, and much more!
Amazon is one of the world’s largest and most successful eCommerce platforms. Since they established an air hub in Cincinnati, companies are flocking to the city. These companies are moving closer to the Amazon air hub for the opportunities it will bring – allowing them to be close to one of Cincinnati’s major employers. eCommerce, marketing, fulfillment, and delivery businesses benefit from this new air hub.
The closer eCommerce and adjacent businesses are too significant air hubs, the more centralized their business operations will be. This is why we are seeing such a dramatic influx of companies moving to Cincinnati to be closer to the Amazon hub.
Here are some of the top companies moving to Cincinnati to take advantage of the opportunities offered by the Amazon hub.
Amify is a company that helps eCommerce businesses to market their products on Amazon and maintain a consistent brand image. The company began as a third-party Amazon seller but shifted its focus to brand management. The company recently established its new headquarters in an old fire station building in Cincinnati – a quaint fresh start for this growing business. The Amazon air hub in Cincinnati presents the opportunity for Amify to gain more clients, manage its branding, and even work with Amazon logistics to ensure clients’ products are always in stock.
Satco is a company that provides air cargo equipment, which is why developing a new Amazon air hub in Cincinnati is drawing this business in. When Satco moves to Cincinnati, this will bring in approximately 70 new jobs to the area. With the addition of Satco, Cincinnati is quickly becoming a leader in logistics and distribution.
Many Cincinnati-based businesses benefit from the business that the Amazon air hub will bring to the city – not just eCommerce businesses. As the air hub is established, we can expect to see small businesses and tech businesses thrive. The city is drawing up incentives to help small businesses to grow, connecting startups with more significant companies to encourage growth.
Being closer to the air hub helps eCommerce businesses cut logistics costs, which is why many small and large eCommerce companies are moving their headquarters to Cincinnati. The same goes for manufacturing and dropshipping businesses. With this influx of companies in the city, Cincinnati’s job market will soon be booming. Cincinnati residents in eCommerce, sales, marketing, and logistics, can expect to see many more lucrative job opportunities coming their way.
The housing market in Cincinnati will see drastic changes with the arrival of the new Amazon air hub. With the companies moving into the city will come workers relocating. Additionally, more people will move to the city, hoping to access better job opportunities. This means that suburbs like Loveland, Blue Ash, Terrace Park, and Montgomery will become sought-after locations. There will be a highly competitive market for residential housing in the city.
We saw the same thing happen in North Virginia when Amazon placed its HQ2 in the city. Darren Robertson of Northern Virginia Home Pro says: “When Amazon announced its relocation to Northern Virginia in November, we saw an instantaneous spike in the number of calls, inquiries, and leads from prospective buyers and homeowners. This increased interest focused on housing in the Washington area, particularly suburbs like Crystal City and Arlington.”
Commercial properties will become increasingly sought after, particularly warehousing facilities. eCommerce businesses may need to invest in flex spaces to access property in the city. With the rise of hybrid and remote working, the need for office space has declined – allowing eCommerce businesses to create flex spaces that combine office and warehousing facilities. CRE investors will gain from their industrial real estate investments.
With the influx of warehousing facilities, one might also expect a rise in crime in the city. Warehouse theft is a significant consideration for small to corporation-sized logistic companies. As a result, businesses need to invest in corporate security systems to prevent security breaches and mitigate employee theft.
The Cincinnati real estate market and the business sector are about to change drastically with the introduction of the new Amazon air hub. Businesses like Amify have already moved to the city, with more to come. More jobs mean more migrants to the area – and the real estate sector is about to become highly competitive. CRE investors with Cincinnati real estate investments stand to make significant returns in the coming years.