National Landing, Arlington Neighborhood
Section: NVA Neighborhoods
Author: Susan Isaacs, Washington DC Real Estate Strategist
Home Of Amazon HQ2
The heart of National Landing, Arlington includes key Amazon HQ2 locations such as Crystal City, Pentagon City, and a portion of Potomac Yard.
Phase 1 of Amazon HQ2 (Metropolitan Park) is fully complete, representing roughly half (about 2.1 million square feet out of the planned 4 million square feet) of the total intended office space. It features two 22-story towers, retail, and a public park.
Phase 2 (PenPlace) remains on hold as of mid-2026. Construction on this phase, which includes the Helix building, remains paused with no immediate start date as of August 2026. Phase 2 accounts for roughly 50% of the physical square footage of the original master plan. Amazon halted development on PenPlace after a global re-evaluation of its office space needs, driven by the widespread shift to hybrid and remote work. Because the completed Phase 1 (Metropolitan Park) can already accommodate up to 14,000 employees, above Amazon’s current Arlington workforce of about 8,500, the company does not (yet) require the additional 3 million square feet of space that PenPlace would provide.
Missed Performance Marks And Lost Incentives
Amazon pledged to bring over 3500 new households to the area and over 25,000 high-paying jobs over in 12 years of National Landing construction. The original 2018 agreement between Arlington and Amazon tasked Amazon with creating 25,000 high-paying jobs (with an average annual salary of $150,000+) in Arlington. The drop-shipping giant was projected to reach 11,643 qualifying jobs by the end of 2025, but ended with just 7,159 qualifying positions, actually losing 73 qualifying jobs compared to the start of that year. Amazon is currently 4,484 jobs behind schedule and counting. Only 7,159 of the 8,500 total people currently at the site meet the high-wage and legal parameters required to qualify for state funds.
Amazon officially requested to extend its hiring deadline out to 2038.
The job promises and tax incentives negotiated for Amazon HQ2 are governed by a strict “pay-for-performance” policy. Because Amazon’s hiring flatlined, creating zero incentive-eligible jobs in 2025, the tech giant missed its job targets and forfeits incentives. Amazon has forfeited an estimated $98.6 million in projected state and local subsidies so far this year.
Amazon can’t unlock the next tranches of its projected $750 million state subsidy and local tax grants when it misses targets. The estimated $98.6 million shortfall for this year breaks down into two specific buckets:
Under its separate agreement with Arlington County, Amazon receives a 15% cut of incremental Transient Occupancy Tax (hotel tax) revenues, but only if local hotel revenues exceed a pre-pandemic baseline.
In September of 2025, hotel revenues cleared the baseline, resulting in Arlington cutting Amazon its first-ever local check for $81,745.
The county’s 2026 fiscal year ran from July 1, 2025, through June 30, 2026. ACED released the official statement on September 1, 2026 confirming that the hotel revenues fell $449,153 short of the required baseline, so there was no check.
Living In Amazonland
National Landing is situated between Crystal City (Arlington), Pentagon City (Arlington) and Potomac Yard (Alexandria). Visit these individual neighborhood profiles for more information.
Whether you want to live in the center of everything, experiencing National Landing’s evolution day by day, or find a quiet spot nearby to plant your garden and watch the helix rise on the horizon, there’s a neighborhood near National Landing for you.
Investing In National Landing
Short-term rentals are heavily restricted in Arlington County, with the exception of CDPs like West Falls Church. Investors enjoy fewer general rental restrictions compared to the District of Columbia, due to Virginia’s statewide ban on rent control.
Independent Alexandria City is exempt from Fairfax County’s strict short-term rental laws and takes a friendlier approach, with registtration, taxation and reporting requirements. Long-term rentals can be very profitable in Alexandria City.
Fairfax county is not STR-friendly, but investment in long-term rentals can still be profitable for duplex, triplex and single family home types. For townhomes and subdivisions, be sure to check HOA restrictions.
Disclaimer
We are not attorneys, legal experts, investment counselors, or CPAs. The content on this channel is presented for informational purposes only and derived from reliable sources, but should not be considered legal, financial, investment, transaction or real estate practice advice. Susan Isaacs and Compass, their principals and/or representatives, do not guarantee or warrant its accuracy, completeness, or applicability to any specific real estate transaction. Homebuyers should read applicable D.C. law and code as part of their due diligence, and seek help from licensed, qualified professionals for interpretation and application to their specific transaction.