Google Invests $2.1 Bln For Office Space In NYC

Tech giants Google (GOOGL) is buying a new office property in Manhattan worth $2.1 billion, as per reports. The 1.3 million square foot space in Hudson Square is the most expensive property acquisition by a company, according to Wall Street Journal.

The waterfront property was leased by Google back in 2018 from Oxford Properties Group and Canada Pension Plan Investments with an option to buy. The company said that it will exercise the clause in the opening quarter of 2022. The campus will be ready for use by mid-2023.

The building was originally constructed in 1930 for freight trains and the compound takes up two city blocks. At present, there are 12,000 people from the city of New York who work for Google, and the company will add up to 2000 more from the city while it continues to operate remotely until the health department deems the conditions fit to open up completely.

The company's Chief Financial Officer, Ruth Porat said, 'As Google moves toward a more flexible hybrid approach to work, coming together in person to collaborate and build community will remain an important part of our future. It is why we continue investing in our offices around the world.'

Porat also added that the campus will be made in a way that will be able to offset 100% of its carbon footprint, a part of Google's goal.

Apart from the property at St. John's Terminal site at 550 Washington Street, another campus at Pier 57, Chelsea, is expected to be finished and ready to use by 2022. This campus was bought for $2.5 billion back in 2018.

Porat added that Google is also concentrating on giving back to the community with the help of grants. "Since 2005, Google has provided over $170 million in grant funding to nonprofits in New York. In the Hudson Square neighborhood, in particular, we're supporting the new Jackie Robinson Museum opening next year with a grant to help deliver new educational programming for students" added the CFO.

The company is working with different organizations to help the community with child education and child-hunger problems. NYC Mayor Bill de Blasio said," Google's historic investment in New York City marks an enormous step for our recovery."

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