Published: Tue, December 18, 2018
Money | By Ethel Goodwin

Google to spend US$1 billion on new offices in New York

Google to spend US$1 billion on new offices in New York

Google parent Alphabet's chief financial officer Ruth Porat said it would lease large office buildings in lower Manhattan, which will become the centerpiece of a campus of more than 160 000 square meters. The project would add about 7,000 jobs almost doubling the company's NY presence over the next 10 years. This is Google's second push for development in the city, in March the company spent $2.4 billion on a Chelsea Market building where they already operated offices, a Google spokesperson also said that the company also planned a redevelopment of Pier 57 on the Hudson River.

Google plans to invest $1 billion in a new 1.7 million-square-foot Hudson Square campus. Projects have included outfitting the New York City Public Library System with free Wi-Fi hotspots for public school students and families without home internet access. The company has maintained a small presence of about 7,000 workers in offices there.

The 1.7 million square-foot campus will be called Google Hudson Square, according to a company blog post on Monday. The company has obtained leases for 315 and 345 Hudson Street.

Tech companies are "coming to the realisation that the Bay Area, which has traditionally been the major centre of tech activity in the U.S., is getting expensive and crowded", said Andrew Bartels, principal analyst at Forrester Research.

It is a "fairly sensible" move for Google given the amount of available talent pool, Atlantic Equities analyst James Cordwell said.

Mountain View, California-based Google's move to invest in prime real estate on the Lower West Side of Manhattan also underscores the growing importance of NY as a hub for innovation and an incubator for technology companies. And the company is also investing in other parts o the US - the blog post notes the company opened new offices and data centers in a number of locations this year, including Detroit, Boulder, Los Angeles, Tennessee and Alabama. The company now has more than 7,000 workers there.

The location of Google's new global headquarters. "Our investment in NY is a huge part of our commitment to grow and invest in US facilities, offices and jobs", she wrote.

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