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.
Amazon.com 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.
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.
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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