Google to buy more office space in NYC as big tech swoops down on real estate

Sept. 21 (Reuters) – Google plans to purchase an office building in Manhattan for $ 2.1 billion, as owned by Alphabet Inc. (GoogL.O) The search engine giant is investing in prime real estate alongside other tech companies, even as hybrid working models are becoming common.

The deal for the St. John’s Terminal location in New York City, which Google is currently leasing, will close in the first quarter of next year, CFO Ruth Porat said in a blog entry on Tuesday. The room is to be opened by mid-2023.

Tech giants with billions of dollars in cash reserves have benefited from lower office building prices in US cities. Inc (AMZN.O) Purchase of the Lord & Taylor building on Fifth Avenue for $ 978 million last year and from Facebook Inc. (FB.O) Renting the Farley Building across from Madison Square Garden is a prime example of Manhattan’s real estate prospects.

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

Tech was the top industry in leasing activity in Manhattan for the second year in a row, Brokerage CBRE Group Inc (CBRE.N) said in January of this year. Continue reading

As Big Tech expands its presence, others are vacating office space as remote working caused by a pandemic has prompted companies to reassess real estate needs.

Financial firms including JPMorgan Chase & Co (JPM.N)According to the media, they wanted to sublet large office blocks in Manhattan Reports from the beginning of this year.

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

The investment comes at a time when most of its employees are working remotely, and the company has extended its voluntary return to office policy through January. Continue reading

Reporting from Akanksha Rana in Bengaluru; Editing by Shinjini Ganguli

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