Google buys more office space in New York as big tech attacks real estate

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September 21 (Reuters) – Google plans to buy Manhattan office building for $ 2.1 billion, as search engine giant Alphabet Inc (GOOGL.O) joins forces with other tech companies to invest in prime real estate, even as hybrid working models become common.

The deal for the St. John’s New York terminal site, which Google currently leases, will be finalized in the first quarter of next year, CFO Ruth Porat said in a statement. blog post Tuesday. The space is expected to open by mid-2023.

Tech giants, with billions of dollars in cash reserves, have benefited from falling prices for office buildings in cities across the United States.

Amazon.com Inc’s (AMZN.O) $ 978 million purchase of the Lord & Taylor Building on Fifth Avenue last year and Facebook Inc’s (FB.O) lease of the Farley Building in across from Madison Square Garden are considered prime examples of Manhattan real estate. perspectives.

A logo can be seen on the Google offices in New York. New York, United States, July 29, 2021. REUTERS / Andrew Kell

The technology was the industry leader for the second year in a row in rental business in Manhattan, brokerage firm CBRE Group Inc (CBRE.N) said in January of this year. Read more

As Big Tech expands its footprint, others are freeing up offices, as remote working triggered by a pandemic has prompted businesses to reassess the need for real estate.

Financial firms, including JPMorgan Chase & Co (JPM.N), were looking to sublet large office blocks in Manhattan, according to media earlier this year.

Google’s latest investment “builds on our existing plans to invest more than $ 250 million this year in our New York campus presence,” Porat said.

The investment comes at a time when most of its employees are working remotely, and it has extended its policy of voluntary return to the office until January. Read more

Report by Akanksha Rana in Bengaluru; Editing by Shinjini Ganguli

Our standards: Thomson Reuters Trust Principles.


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