Google $2.1 billion office purchase in New York

With a $2.1 billion purchase on Manhattan’s West Side, Google is drastically extending its office footprint in the city.

The move coincides with the company’s adoption of a hybrid work paradigm in response to the pandemic.

The new building will serve as a “anchor” for Google‘s huge city campus, which is home to the majority of the company’s 12,000-strong regional employees. It is expected to open in the middle of 2023.

The deal, according to the Wall Street Journal, is the most costly sale of a single US office building since the start of the Covid-19 pandemic, and one of the most expensive ever in US history.

Google’s largest office outside of California is in New York, and the company’s presence in the city has steadily risen in recent years.

Google’s purchase of the St. John’s Terminal, a former freight transfer facility that it had previously leased, is part of the company’s 1.7 million-square-foot Hudson Square campus expansion. The structure will be “reimagined into a highly sustainable, adaptable, and networked building,” according to Google (GOOG). The company will eventually employ 14,000 people in New York City.

Despite its shift toward a hybrid workplace, Google stated in a blog post that it is purchasing the facility because “in-person cooperation is a vital element of our future.” Google recently postponed a full return to the office until 2022, and is now allowing workers to work from home on a permanent basis if their job allows it.

Despite the fact that many people have been forced to work from home due to the epidemic, IT companies have been extending their office space. In Bellevue, Washington, Facebook (FB) just purchased a previously underused corporate headquarters from recreational store REI. According to Bloomberg, Amazon (AMZN) has been eyeing Hudson Yards in New York, while Apple (AAPL) has revealed substantial expansion plans in a number of US locations.

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