Sunday, 24 March, 2019

Silicon Valley East: Google plans $1B expansion in NY

Pedestrians walk past Google headquarters in the Manhattan borough of New York City New York U.S Google to Spend $1 Billion to Establish New Campus in New York City
Lloyd Bates | 18 December, 2018, 11:57

According to Porat, Google is growing faster in areas outside its home base of the San Francisco Bay Area, noting that the company this year opened new offices and data centers in locations including L.A.; Detroit; Boulder, Colo.; Tennessee; and Alabama.

Google's first NY office at 111 Eighth Avenue is one of the city's largest buildings that it bought in 2010 for $1.77 billion.

Alphabet earlier this year said it was buying the Manhattan Chelsea Market for $2.4bn, and planned to lease space at Pier 57 on the Hudson river.

Today, Google revealed its official plans for the expansion of its New York City campus, via Politico. (Pictured above: Artist's rendering of 315 Hudson St., which is now undergoing redevelopment by its owner, real-estate firm Jack Resnick & Sons.) That will be followed by the nearby St. John's Terminal building, at 550 Washington St., in 2022 once the building is complete. Several New York City protests have already happened related to the move. But it's the search giant's intention to double the size of its NYC workforce within 10 years, and for that the company requires even more space. Many high-tech workers are thus choosing to live elsewhere, causing major tech employers such as Apple, Amazon and Google to look in new places for the employees they need to pursue their future ambitions.

Pictured above: Artist's rendering of 315 Hudson St.

An illuminated Google logo is seen inside an office building in Zurich Switzerland

Tech companies are "coming to the realization that the Bay Area, which has traditionally been the major centre of tech activity in the US, is getting expensive and crowded", said Andrew Bartels, principal analyst at Forrester Research.

The Amazon deal was brokered by the state in cooperation with New York City's Economic Development Corporation.

In Google's case, Garsd reports, the company "says it will be investing heavily in NY, including a digital skills leaning center in Manhattan". The company employs about 7,000 people in NY. It will begin moving into the Hudson Street locations in 2020 and Washington Street by 2022.

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