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Amazon has confirmed that it is pausing construction on its second headquarters facility in Arlington, VA.

Amazon Pauses Construction of HQ2 Phase 2 in Arlington

Amazon has confirmed to local media outlets that it is pausing construction on phase two of its second headquarters facility in Arlington, VA.

While the second phase of the $2.5-billion investment campus, dubbed HQ2, is being delayed, the first phase is expected to open on time this June and will be occupied by 8,000 employees.

Related: JBG SMITH remains on track to deliver phase one of Amazon HQ2

“The construction moratorium (on phase two) 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,” reported Bloomberg.

Phase two of HQ2 was approved by the Arlington County Board in April 2022 would have come with hundreds of construction jobs, nearly three million square feet of office space and a futuristic, nature-inspired building.

Thus far, this move is being described as a “pause” and not a cancellation. The Business Journal reports that Amazon still plans to apply for permits associated with the project’s second phase.

Earlier this year, Amazon announced plans to lay off more than 18,000 employees across the company.

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About Lisa McDuffie

Lisa McDuffie arrives at ConnectCRE via REALTOR® world, where she served for nearly two decades as communications director for one of the nation’s largest REALTOR® organizations. She supported two membership-elected presidents who were commercial real estate practitioners, and managed the communications initiatives of the organization’s commercial special interest group. When not following the latest commercial real estate news, Lisa is zeroed in on her charismatic off-the-track thoroughbred as she makes the transition from an utterly failed racehorse to a lovely show hunter.

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