Google plans to buy New York office building for $2.1 billion

An individual in a masks walks by the New York Google places of work after they introduced they’ll postpone their reopening in response to up to date CDC tips throughout the outbreak of the coronavirus illness (COVID-19) in Manhattan, New York Metropolis, U.S., July 29, 2021.

Andrew Kelly | Reuters

Google plans to purchase a New York Metropolis workplace constructing for $2.1 billion, whilst most of its workforce stays distant, the corporate announced Tuesday.

The acquisition is the costliest for any single U.S. workplace constructing because the pandemic’s inception, in keeping with The Wall Avenue Journal, citing Actual Capital Analytics. The Journal first reported the information of the deal.

Google already leases the constructing and mentioned it could train an choice to buy the St. John’s Terminal constructing within the Hudson Sq. neighborhood of Manhattan. In a weblog publish, CFO Ruth Porat mentioned the constructing would “function the anchor” of its new campus within the space.

The 550 Washington Avenue workplace constructing is seen on September 21, 2021 in New York Metropolis.

Michael M. Santiago | Getty Pictures

The deal is a optimistic signal for New York because it emerges from the pandemic whilst main employers together with Google have postponed their return-to-office dates. Google has informed workers they needn’t return to the workplace until January. Its CEO beforehand mentioned he expects 20% of employees to continue telecommuting after the reopening.

Google, like different tech companies, has thrived throughout the pandemic, bringing in substantial income to spend money on actual property and different initiatives. Shoppers relied much more closely on web providers throughout shutdowns, together with for college, work and leisure.

The plans add to Google’s already giant footprint in Manhattan. The corporate beforehand announced it could make investments $250 million in New York Metropolis this yr and increase its headcount within the space from 12,000 to 14,000 over the following few years.

Google plans to open the St. John’s Terminal web site at 550 Washington St. by mid-2023. The location shall be Google’s largest workplace outdoors of California, in keeping with CFO Ruth Porat. The campus shall be about 1.7 million sq. ft and home Google’s gross sales and partnerships groups.

Google expects the deal to shut within the first quarter of 2022.

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