Google officially confirmed that it would invest $2.1 billion to purchase a massive Manhattan office tower.
The complex is on the Hudson River shore, costing the maximum price for an office complex in current history and sending a ray of hope to a property market battered by the pandemic.
The deal comes at a pivotal time for New York City's workplace industry, as the rapid adoption of remote work plus the loss of office buildings have posed the sector's most significant challenge in years.
While Manhattan has a surplus of office area for rent, hitting peak occupancy levels throughout the Covid-19, the four big-tech companies, Facebook, Google, Apple, & Amazon, have put a big bet on the city's fate. One of the few high points for the city, which has been affected worse by the pandemic's financial impact than other major Towns, is that the corporations have rapidly expanded their operations and employees.
Google has already signed a lease for the 1.3 million sq ft St. John's Facility, near the Holland Tunnel, which is a historical shipping terminal. The business has a 12,000 workforce in New York, its largest satellite location beyond its California hub. It also announced on 21st Sept that it plans to hire an additional 2,000 in the town shortly.
Google's foothold in NYC started in 2000 with a solitary representative working out of a Starbucks. In 2010, the corporation solidified its devotion to the city by purchasing a 15-storey skyscraper in Chelsea for $1.8 billion. Google has significantly expanded its staff in Manhattan in the last ten years, hiring young engineers from local institutions.There, the company is enticing tech professionals who don't want to reside in Silicon Valley and increasing its marketing and sales teams.
The terminal structure that will house Google's new workplace is amid SoHo, Greenwich Village, and TriBeCa. Many artistic, entertainment, and digital organisations have locations there, notably Warby Parker, an eyeglasses firm and Squarespace, a site developer. The neighborhood has also been chosen as the location for Disney's new headquarters in New York city. A redevelopment in 2013 resulted in a surge in the creation of new high-rise and condominium structures, and the neighborhood now has a burgeoning residential demographic.
Google CFO stated that as Google shifts into a more flexible mix model to work, getting together in reality to create and develop society will remain as a vital part of their future.
It is for this reason that they keep investing in their operations throughout the world. He adds that their decision to acquire St. John's Terminal adds to their plans to raise over $250 million on dilating the New York location footprint this year.
Google's key competitors, especially Amazon and Facebook, have made significant investments in NYC, transforming a region of the West Side through Midtown to Lower Manhattan into a booming tech district. Facebook boasts 4,000 staff in Manhattan and has bought almost 2.2 million sq. ft., the majority of which was signed shortly prior to and during the virus. In March 2020, Amazon purchased the historic Lord & Taylor skyscraper on Fifth Avenue for 1.5 billion dollars. The growing presence of Google and other technology behemoths in New York underlines the city's rising economic prominence. Economists predict that following the epidemic, the tech sector will be a major source of job creation.
Google expects to open its new location by the mid of 2023.