A walk through Seattle’s 'Amazonia' neighborhood made me understand why any city would be wary of hosting the tech giant

Instead of choosing one city , the company decided to build two new headquarters, in the Long Island City neighborhood of Queens, New York, and the Crystal City area of Arlington, Virginia. As Business Insider's Dennis Green reported , each of the two locations were supposed to get about half of the expected 50,000 employees, and a portion of the investment.

Now, the plan has changed. On Thursday, Amazon announced that it will no longer build half of its HQ2 in New York . This announcement comes after fervent opposition from local lawmakers , and it's estimated that New York could lose out on over $27 billion of tax revenue . Analysts expect the change in plans will not hurt Amazon's business .

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You only need look to Seattle to see why a city might be apprehensive about hosting the giant.

Seattle's median rent has jumped by three times as much as the national figure over the last decade, while the city has the third largest homeless population in the country, according to the Department of Housing and Urban Development .

Many have blamed soaring housing prices and the homeless issue on Amazon, which accounts for more than 45,000 jobs in the city and around 20% of Seattle's prime office real estate.

Amazon dominates Seattle, sprawling across downtown and upsetting locals with snarled traffic, soaring housing prices, never-ending construction, and accelerated gentrification. The city has seen an unprecedented economic surge, adding 220,000 jobs over the past decade .

But the surge has come at a cost. Amazon has the economic leverage to essentially dictate terms, a dynamic readily apparent in the company's search for HQ2's eventual location .

In December 2017, I spent a day in the Seattle neighborhood locals call Amazonia to see how Amazon has affected the city.

In the 90s, Seattles South Lake Union neighborhood was a mess of parking lots, warehouses, and industrial buildings. Amazon has transformed the neighborhood and its surrounding areas, Belltown and Denny Triangle. Each of those pins on the map is an Amazon office.

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Amazons offices are spread across more than 33 buildings throughout the area, though some say the number is closer to 40. The company leases 100,000 square feet of office space in this building, nicknamed Otter.

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Harrison Jacobs/Business Insider

Source: SF Gate

Its hard to overstate how thoroughly Amazon dominates downtown. The company is up to occupying 8.1 million square feet of office space in Seattle, reports say. Day 1 Tower, opened in 2016, is one of two towers that form the heart of Amazons campus.

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Harrison Jacobs/Business Insider

Source: Geekwire , SF Gate , CNBC

Amazon employees are literally everywhere. Theyre easily spotted by the ubiquitous blue badges hanging from their belts or around their necks.

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Harrison Jacobs/Business Insider

Amazon has about 20% of Seattles prime office real estate, more than any other employer in a major US city. It occupies more square feet than the next 40 largest employers in the city combined.

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Harrison Jacobs/Business Insider

Source: The Seattle Times

Construction on Amazons third and fourth towers is underway. The biggest employer in a city usually occupies less than 5% of office real estate but having just one take up so much space has its consequences.

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Harrison Jacobs/Business Insider

For example, when the headquarters of Washington Mutual, the previous major officeholder in Seattle, was dispersed by its new owner, JPMorgan Chase , it took years for downtown to recover.

The most iconic part of the campus is the Spheres, glass domes that will be filled with diverse and exotic plants, a waterfall, and 45-foot-tall rusty-leaf fig tree. The interior will be kept at a pleasant 72 degrees, and employees will be able to work there.

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Harrison Jacobs/Business Insider

Source: The Seattle Times

Amazons real-estate director, John Schoettler, told The Seattle Times that Amazon built the domes not just for employees, but "for the city." They will not be open to the public, but Amazon has said it is looking for ways to bring in visitors.

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Harrison Jacobs/Business Insider

Source: The Seattle Times

The dog park, however, is open to the public. Amazon is a famously dog-friendly workplace.

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Harrison Jacobs/Business Insider

Source: The Seattle Times

Amazon has commissioned several sculptures that dot public spaces, like "Petros" by the artist Julie Speidel. But they tend to conform to Amazons sleek aesthetic, which many say lacks the colorful character of the rest of Seattle.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

There is a strange vibe that Amazon controls everything. Amazon security guardsquestioned this photojournalist about what she was doing on public property. Shortly after, the guard began filming me, saying Amazon documents all media personnel. I hadnt identified myself as a reporter.

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Harrison Jacobs/Business Insider

It's possible this is a case of security guards on a power-trip.

"This is not our policy," Amazon spokesman Adam Sedo told Business Insider in a statement. "Were investigating why this happened and taking steps to ensure it doesnt happen again."

Amazon is "almost juicing" the office market, Matthew Gardner of Windmere Real Estate told The Times. Office space for non-Amazon employers has at times shrunk, but because Amazon keeps growing, its demand keeps increasing. Amazon has leased this entire building on Westlake, the main thoroughfare, since it was built.

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Harrison Jacobs/Business Insider

Source: The Seattle Times ( 1 , 2 )

Developers are capitalizing on the demand to build a host of new skyscrapers. In May, the city was home to 58 construction cranes, by far the most in the US.

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Harrison Jacobs/Business Insider

Source: CNN

The Times reported in July that 74 projects were under construction in downtown Seattle. Two-thirds of the buildings will be residential towers, with most being apartments for rent, not condos.

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Harrison Jacobs/Business Insider

Source: The Seattle Times

Seattle has gone from one of the most affordable West Coast cities to one of the least, Aaron Terrazas, a senior economist at Zillow, told CNN Money. The city and developers have tried to alleviate that by building tons of apartments. Downtown has added 20,000 units in the past decade, with another 27,000 on the way.

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Harrison Jacobs/Business Insider

Source: CNN Money , The Seattle Times

But nearly all the buildings are considered luxury real estate,with rents 40% higher than in older buildings. The dueling 41-story Insignia towers include amenities like a "sky retreat," an indoor lap pool and sauna, and a screening room.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: The Seattle Times

From 2005 to 2015, Seattles median rent jumped by three times as much as the national figure did. In downtown Seattle, average rent has climbed to $2,400 a month, meaning youd need to make about $96,000 to afford it.

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Harrison Jacobs/Business Insider

Source: Business Insider , The Seattle Times

Big and small businesses in the neighborhood have to cater to Amazon employees if they want to survive even strip clubs and sex shops like Little Darlings and Fantasy Unlimited.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: Geekwire

High-end furniture stores like West Elm and specialty grocers have moved in to service the new luxury renters, but they didnt seem too busy when I was there.

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Harrison Jacobs/Business Insider

Restaurateurs have flocked downtown to capitalize on the Amazon workforce, but business hasnt shown up as promised. Last January, Josh Henderson closed his tacos-and-drinks spot, Bar Noroeste, when Amazonians didnt bite. He reopened as a ramen shop months later.

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Harrison Jacobs/Business Insider

Source: Eater Seattle

Amazon has reportedly done its part to help. The companys cafeterias are kept to a smaller capacity to encourage employees to go out into the neighborhood and spend at restaurants.

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Harrison Jacobs/Business Insider

Source: The Stranger

Amazon has created a booming lunch crowd that a fleet of food trucks feast on every day. When I walked around the neighborhood, it seemed as if everyone on the street carried a blue badge and a takeout box.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

With so much real estate under its belt, Amazon has become one of the biggest landlords in the city, dictating which businesses rent its spaces. It has, however, has rented out to local businesses and avoided chains.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

The company is determined to turn its surrounding area into a thriving all-day neighborhood. As of August, the company rents out space to 32 businesses, with 24 of those being restaurants and cafes.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Amazons lease agreements require restaurants to stay open late into the night. But the area is said to turn into a ghost town after work, and many restaurants have found they cant generate enough business at night to justify the cost of staying open.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: The Seattle Times

Some former restaurant employees said Amazon security guards micromanaged shops and tracked when they close. One restaurant owner likened Amazon to "Big Brother." Chris Keff, a James Beard Award-winning chef, sold her restaurant Flying Fish when she found she was just breaking even.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: The Seattle Times , Marketplace

Amazons massive pull has brought other tech companies like Google, Facebook, Apple, Microsoft, Uber, and others to downtown Seattle to snap up local talent. But some say that has only made it harder for small businesses and startups.

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Harrison Jacobs/Business Insider

Eric Blohm, a senior managing director for the commercial-real-estate firm Savills Studley, said some developers wouldnt even talk about leasing floors theyre looking for companies that will take up whole buildings.

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Harrison Jacobs/Business Insider

Source: The Seattle Times

The neighborhood is a microcosm of Silicon Valley cultural trends. Bulletproof Coffee, the company that masterminded the idea of putting a slab of butter in your morning coffee, opened an outpost earlier this year.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: Eater Seattle

With so many techies in the city, Seattle has become a testing ground for some startups like LimeBike and Spin, which offer dockless bike sharing. Green bikes were scattered through the neighborhood.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: PRI

The neighborhood seemed to move to the rhythms of Amazon. At lunchtime, the streets were bustling. In the hours after, they were practically empty, save for a couple people grabbing coffee.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

The load of employees hasnt snarled just traffic, but public transportation. Buses are reportedly packed at rush hour, and this summer they were so overcrowded that Seattle added extra ones to accommodate demand.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: The Seattle Times

Amazon has tried to alleviate the traffic issue with a private fleet of shuttles to ferry employees to and from the farther suburbs. Unlike other companies, Amazon has kept the shuttles white and without signage.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: Geekwire

In the past decade, South Lake Union has invested $668 million in infrastructure improvements, including a new streetcar line. Most of that came from public funds, and some critics have questioned whether that money might have been better spent on education or housing.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: The Seattle Times

Amazon has pushed the city to install more cycling paths and tracks throughout the city, even funding the ones around its campus. But some Seattleites have complained that the new lanes burden already gridlocked streets.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: MyNorthwest

Amazon has tried to warm its relationship with Seattleites. Since 2015, the company has given out more than 1.7 million bananas at "community stands." While well-intentioned, the effort upended the local economy for bananas.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: The Wall Street Journal

Amazon has given tons of retail space to FareStart, a nonprofit that offers jobs and training at its restaurants to people in poverty. Maslows is one of five restaurants run by FareStart in the area.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: The Seattle Times

Amazon has let Marys Place, a nonprofit homeless shelter, operate here for free since 2016. It will soon come down to build more Amazon buildings. When those are complete, Amazon will gift the nonprofitsix stories and 47,000 square feet in one of them.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: The Seattle Times

Cities across the country had put together extensive economic incentive packages to lure Amazon. But critics say that giving away too much could eliminate benefits to the city and that cities need to plan for the inevitable side effects: increased traffic, housing shortages, and skyrocketing rent.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: Business Insider , CNN Money

Tim Burgess, a former Seattle mayor who has long been on the City Council, said in November that while Amazon had overall been a positive for the city, the downsides had affected "people who are traditionally marginalized anyway or already in our system: people living in poverty, people of color, immigrants, and refugees."

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: Geekwire

Seattle reminded me of stories Ive read aboutSeoul, South Korea, where anything and everything is made by or somehow tied to Samsung, which dominates the economy there. Amazons purchase of Whole Foods last summer seemed to hint at that future.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

When I speak to family and friends from Seattle about Amazons dominance, they sound ambivalent. For decades, Boeing dominated, putting workers and the city at the mercy of the companys layoff cycles. In the early 1970s, for example, the company cut its workforce in half, devastating the local economy. People fear that history will repeat itself.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

Source: The Seattle Times

Its hard to deny that Amazon has been a positive for the city, but there is definitely an uncomfortable feeling that the area is Amazons fiefdom, subject to Amazons rules. New York and Virginia might want to brace themselves.

BusinessInsider USA Images

Harrison Jacobs/Business Insider

A walk through Seattle’s 'Amazonia' neighborhood made me understand why any city would be wary of hosting the tech giant

In the 90s, Seattles South Lake Union neighborhood was a mess of parking lots, warehouses, and industrial buildings. Amazon has transformed the neighborhood and its surrounding areas, Belltown and Denny Triangle. Each of those pins on the map is an Amazon office.

Amazons offices are spread across more than 33 buildings throughout the area, though some say the number is closer to 40. The company leases 100,000 square feet of office space in this building, nicknamed Otter.

Its hard to overstate how thoroughly Amazon dominates downtown. The company is up to occupying 8.1 million square feet of office space in Seattle, reports say. Day 1 Tower, opened in 2016, is one of two towers that form the heart of Amazons campus.

Amazon employees are literally everywhere. Theyre easily spotted by the ubiquitous blue badges hanging from their belts or around their necks.

Amazon has about 20% of Seattles prime office real estate, more than any other employer in a major US city. It occupies more square feet than the next 40 largest employers in the city combined.

Construction on Amazons third and fourth towers is underway. The biggest employer in a city usually occupies less than 5% of office real estate but having just one take up so much space has its consequences.

The most iconic part of the campus is the Spheres, glass domes that will be filled with diverse and exotic plants, a waterfall, and 45-foot-tall rusty-leaf fig tree. The interior will be kept at a pleasant 72 degrees, and employees will be able to work there.

Amazons real-estate director, John Schoettler, told The Seattle Times that Amazon built the domes not just for employees, but "for the city." They will not be open to the public, but Amazon has said it is looking for ways to bring in visitors.

The dog park, however, is open to the public. Amazon is a famously dog-friendly workplace.

Amazon has commissioned several sculptures that dot public spaces, like "Petros" by the artist Julie Speidel. But they tend to conform to Amazons sleek aesthetic, which many say lacks the colorful character of the rest of Seattle.

There is a strange vibe that Amazon controls everything. Amazon security guardsquestioned this photojournalist about what she was doing on public property. Shortly after, the guard began filming me, saying Amazon documents all media personnel. I hadnt identified myself as a reporter.

Developers are capitalizing on the demand to build a host of new skyscrapers. In May, the city was home to 58 construction cranes, by far the most in the US.

The Times reported in July that 74 projects were under construction in downtown Seattle. Two-thirds of the buildings will be residential towers, with most being apartments for rent, not condos.

But nearly all the buildings are considered luxury real estate,with rents 40% higher than in older buildings. The dueling 41-story Insignia towers include amenities like a "sky retreat," an indoor lap pool and sauna, and a screening room.

From 2005 to 2015, Seattles median rent jumped by three times as much as the national figure did. In downtown Seattle, average rent has climbed to $2,400 a month, meaning youd need to make about $96,000 to afford it.

Big and small businesses in the neighborhood have to cater to Amazon employees if they want to survive even strip clubs and sex shops like Little Darlings and Fantasy Unlimited.

High-end furniture stores like West Elm and specialty grocers have moved in to service the new luxury renters, but they didnt seem too busy when I was there.

Restaurateurs have flocked downtown to capitalize on the Amazon workforce, but business hasnt shown up as promised. Last January, Josh Henderson closed his tacos-and-drinks spot, Bar Noroeste, when Amazonians didnt bite. He reopened as a ramen shop months later.

Amazon has reportedly done its part to help. The companys cafeterias are kept to a smaller capacity to encourage employees to go out into the neighborhood and spend at restaurants.

Amazon has created a booming lunch crowd that a fleet of food trucks feast on every day. When I walked around the neighborhood, it seemed as if everyone on the street carried a blue badge and a takeout box.

With so much real estate under its belt, Amazon has become one of the biggest landlords in the city, dictating which businesses rent its spaces. It has, however, has rented out to local businesses and avoided chains.

The company is determined to turn its surrounding area into a thriving all-day neighborhood. As of August, the company rents out space to 32 businesses, with 24 of those being restaurants and cafes.

Amazons lease agreements require restaurants to stay open late into the night. But the area is said to turn into a ghost town after work, and many restaurants have found they cant generate enough business at night to justify the cost of staying open.

Some former restaurant employees said Amazon security guards micromanaged shops and tracked when they close. One restaurant owner likened Amazon to "Big Brother." Chris Keff, a James Beard Award-winning chef, sold her restaurant Flying Fish when she found she was just breaking even.

Amazons massive pull has brought other tech companies like Google, Facebook, Apple, Microsoft, Uber, and others to downtown Seattle to snap up local talent. But some say that has only made it harder for small businesses and startups.

Eric Blohm, a senior managing director for the commercial-real-estate firm Savills Studley, said some developers wouldnt even talk about leasing floors theyre looking for companies that will take up whole buildings.

The neighborhood is a microcosm of Silicon Valley cultural trends. Bulletproof Coffee, the company that masterminded the idea of putting a slab of butter in your morning coffee, opened an outpost earlier this year.

With so many techies in the city, Seattle has become a testing ground for some startups like LimeBike and Spin, which offer dockless bike sharing. Green bikes were scattered through the neighborhood.

The neighborhood seemed to move to the rhythms of Amazon. At lunchtime, the streets were bustling. In the hours after, they were practically empty, save for a couple people grabbing coffee.

The load of employees hasnt snarled just traffic, but public transportation. Buses are reportedly packed at rush hour, and this summer they were so overcrowded that Seattle added extra ones to accommodate demand.

Amazon has tried to alleviate the traffic issue with a private fleet of shuttles to ferry employees to and from the farther suburbs. Unlike other companies, Amazon has kept the shuttles white and without signage.

In the past decade, South Lake Union has invested $668 million in infrastructure improvements, including a new streetcar line. Most of that came from public funds, and some critics have questioned whether that money might have been better spent on education or housing.

Amazon has pushed the city to install more cycling paths and tracks throughout the city, even funding the ones around its campus. But some Seattleites have complained that the new lanes burden already gridlocked streets.

Amazon has tried to warm its relationship with Seattleites. Since 2015, the company has given out more than 1.7 million bananas at "community stands." While well-intentioned, the effort upended the local economy for bananas.

Amazon has given tons of retail space to FareStart, a nonprofit that offers jobs and training at its restaurants to people in poverty. Maslows is one of five restaurants run by FareStart in the area.

Amazon has let Marys Place, a nonprofit homeless shelter, operate here for free since 2016. It will soon come down to build more Amazon buildings. When those are complete, Amazon will gift the nonprofitsix stories and 47,000 square feet in one of them.

Cities across the country had put together extensive economic incentive packages to lure Amazon. But critics say that giving away too much could eliminate benefits to the city and that cities need to plan for the inevitable side effects: increased traffic, housing shortages, and skyrocketing rent.

Seattle reminded me of stories Ive read aboutSeoul, South Korea, where anything and everything is made by or somehow tied to Samsung, which dominates the economy there. Amazons purchase of Whole Foods last summer seemed to hint at that future.

Its hard to deny that Amazon has been a positive for the city, but there is definitely an uncomfortable feeling that the area is Amazons fiefdom, subject to Amazons rules. New York and Virginia might want to brace themselves.

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