Google plans to buy New York office building for $ 2.1 billion

Google plans to buy an office building in New York for $ 2.1 billion even as most of its workforce remains remote, the company said on Tuesday.

The purchase is the most expensive for a single U.S. office building since the start of the pandemic, according to the Wall Street Journal, citing Real Capital Analytics. The Journal first reported the news of the deal.

Google is already leasing the building and has said it will exercise an option to purchase the St. John’s Terminal building in Manhattan’s Hudson Square neighborhood. In a blog post, CFO Ruth Porat said the building would “serve as an anchor” for her new campus in the region.

The deal is a positive sign for New York as it emerges from the pandemic even as major employers, including Google, have postponed their return to power dates. Google told employees they didn’t need to return to the office until January. Its CEO previously said he expects 20% of employees to continue telecommuting after the reopening.

Google, like other tech companies, flourished during the pandemic, generating substantial income to invest in real estate and other initiatives. Consumers relied even more on Internet services during shutdowns, including for school, work and play.

The plans add to Google’s already large footprint in Manhattan. The company previously announced that it would invest $ 250 million in New York this year and increase its workforce in the region from 12,000 to 14,000 over the next several years.

Google plans to open the St. John’s terminal site at 550 Washington St. by mid-2023. The site will be Google’s largest office outside of California, according to CFO Ruth Porat. The campus will be approximately 1.7 million square feet and will house Google’s sales and partnership teams.

Google expects the deal to be completed in the first quarter of 2022.

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