Google Buying NYC Office Building to Use as East Coast Campus 

The $2.1 billion purchase would be the most expensive buy for any commercial building since the pandemic.

Google-Buying-NYC-Office-Building-to-Use-as-East-Coast-Campus 

Giant search engine and technology company Google plans to purchase the New York City office building it currently leases for $2.1 billion. According to Real Capital Analytics and The Wall Street Journal, the purchase would be the most expensive commercial buy since the pandemic’s beginning. The building is known as the St. John’s Terminal Building, located at 550 Washington St. in Manhattan’s Hudson Square. As part of its lease agreement, Google had an option to purchase that it is now exercising.

Earlier this year, Google had promised that it would make a $250 million investment in NYC in 2021.

Most of Google’s workforce is currently working remotely. Ruth Porat, Chief Financial Officer of Google, said in a blog post that the commercial building would “serve as the anchor” of its NYC campus.

News of the deal has infused optimism as New York comes out of the worst of the pandemic. Many companies, including Google, are postponing their workers from returning to the office. Google informed its workers that they didn’t have to go back to their offices until January 2022. But Google’s CEO, Sundar Pichai, said 20 percent of its workforce would telecommute, even after reopening its offices.

Most tech companies, including Google, have thrived during the COVID-19 pandemic. American consumers were more dependent than ever on the internet during economic shutdowns, utilizing the digital space for work, school, and entertainment. 

With an excess of revenue, some have invested in real estate. Google already has a heavy footprint in Manhattan. The company plans to increase its NYC headcount to 14,000, up from its current count of 12,000.

Google’s Manhattan office site will be its second-largest office, with nearly 1.7 million square feet. The building will be home to Google’s partnerships and sales force. California is home to Google’s largest office building.

Google said the deal should close by the first quarter of next year and that it will open the building for business by the middle of 2023.

 

 

 

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