Amazon has received a three-year extension from the Arlington County Board to complete the next phase of its HQ2 project in Virginia. The new deadline for Amazon to act on its plan is June 30, 2028. The second phase, called PenPlace, is to be developed within the Aurora Highlands neighborhood.
It will include approximately 3.3 million square feet divided across four buildings. Three 22-story office buildings will feature ground-floor retail space. The proposal also includes a spiral-shaped structure known as “The Helix,” which will be amenity-focused.
Additionally, the plan encompasses 2.5 acres of public open space and underground access for vehicles.
Amazon’s PenPlace expansion extended
An Amazon representative stated that the company has ample space currently but still views PenPlace as a long-term investment.
However, Amazon recently informed employees that it expects to reduce its corporate workforce due to advancements in artificial intelligence. “In the next few years, we expect that this will reduce our total corporate workforce as we get efficiency gains from using AI extensively across the company,” Amazon CEO Andy Jassy wrote in a communication. Despite these workforce changes, the headquarters project still aims to create 25,000 jobs.
However, an application for Virginia taxpayer subsidies earlier this year indicated some challenges in meeting this target. The PenPlace project was initially approved by the County Board in April 2022 but has faced several delays. In May 2023, then-chair of the County Board, Libby Garvey, suggested that the delay might last “just a year.”
Since then, the site has seen limited activity, aside from updates in February to replace a chain-link fence with a wooden panel fence for aesthetic improvements.
Acorn LLC and JBG Smith have been named as development consultants on the project.
