Amazon is setting up shop in San Diego.

Amazon signed a lease for a for 107,000 squre feet of space in University City. The office, located at 10300 Campus Point Drive, is expected to house 500 employees.

San Diego Regional Economic Development Corp. said they have a plan for housing, through building up apartments in the area. They added there is also a traffic abatement strategy for the influx of employees expected.

Amazon currently has a smaller office in Solana Beach. This will be the company's first major office in the county.

The move coming in the midst of Amazon's nation-wide search for a second North American headquarters location. Any city has until October 19 to get a bid into Amazon, but the company said it would give preference to areas with 1 million residents or more.

San Diego put a bid in. A spokesperson said: "San Diego has the geographic proximity to international markets, unparalleled quality of life and workforce talent that companies like Amazon are looking for, so Mayor Faulconer's office has directed the San Diego Regional Economic Development Corporation to coordinate a regional response."

There is no word yet on when Amazon will move into the Campus Point Drive office.