Google buys NYC campus for $2.1 B, one of biggest office deals ever

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Who mentioned the office is lifeless?

Google mentioned Monday it’s paying $2.1 billion for a New York City constructing within the largest American office deal since 2018. 

The deal is for a 1.3 million-square-foot waterfront constructing at Hudson Square in Manhattan that’s set to be accomplished in 2023.

Google had already signed an settlement to lease the Hudson Square office constructing from homeowners Oxford Properties Group and Canada Pension Plan Investments in 2018. The phrases of the lease included an possibility to purchase the constructing, which Google mentioned it should train within the first three months of 2022. 

The 12-story constructing at 550 Washington St. takes up two full metropolis blocks. It was initially constructed in 1930 as a terminal for freight trains that ran on what’s now the High Line. 

The deal alerts that Google is planning to develop its in-person footprint in New York, even because it offers extra workers the choice to work remotely. The company at the moment has 12,000 “Googlers” within the metropolis and mentioned it plans so as to add no less than 2,000 extra. 

But the information additionally comes as Google continues to push back its office reopening date and says many workers will likely be allowed to work remotely eternally — though some should take wage cuts. 

Google plans to develop its New York City workforce from 12,000 to no less than 14,000.
COOKFOX architects

“Coming together in person to collaborate and build community will remain an important part of our future,” Google chief monetary officer Ruth Porat mentioned in a Tuesday blog post saying the deal. “It is why we continue investing in our offices around the world.” 

In addition to the Hudson Square constructing, Google additionally plans to open 320,000 sq. ft in office house at Pier 57 in Chelsea.

New York politicians heaped reward on Google, which is at the moment dealing with an outcry from pro-democracy activists after caving to Russian authorities calls for to delete an opposition app over the weekend. 

The constructing initially constructed in 1930 as a terminal for freight trains that ran on what’s now the High Line. 
COOKFOX architects

“Google’s historic investment in New York City marks an enormous step for our recovery,” mentioned Mayor Bill de Blasio in a press launch despatched out by the tech big.

Gov. Kathy Hochul, in the meantime, mentioned the deal was “yet another proof point that New York’s economy is recovering and rebuilding.” 

At $2.1 billion, Google’s buy of the Hudson Square constructing is the fourth-largest office US constructing deal prior to now 20 years, in accordance with data complied by the true property analyst CommercialCafe. It is the biggest deal since 2018, when Google purchased Chelsea Market for $2.5 billion. 

Google paid $2.5 billion for Chelsea Market in 2018.
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Google additionally owns two smaller buildings in Chelsea: 111 Eighth Ave. and the Milk Building at 450 W. fifteenth St.

Even as Google doubles down on office house, it has advised many workers that they’ll choose to work remotely eternally — with a catch. 

The company rolled out an inner pay calculator over the summer time that confirmed workers who dwell in some suburban and rural areas would seemingly take sizable wage hits.

Even as Google doubles down on office house, it has advised many workers that they’ll choose to work remotely eternally — with a catch. 
Getty Images

Google workers who beforehand commuted an hour to Google’s Manhattan places of work from close by Stamford, Conn. would see their salaries slashed by 15 % in the event that they select to proceed working from house, in accordance with screenshots of the calculator obtained by Reuters in August. 

By distinction, “Googlers” who dwell inside NYC’s 5 boroughs and select to earn a living from home completely wouldn’t see their pay slashed in any respect. 

Tuesday’s deal was first reported by the Wall Street Journal.