Google Acquires Manhattan Building for $2.1 Billion

The Most Expensive Single Building Since the Pandemic
Google Invests More in Office Spaces Needed for Collaboration

[Asia Economy International Department Reporter] Google is reportedly purchasing an office building in Manhattan, New York City, according to the Wall Street Journal (WSJ) on the 21st (local time). The sale price of this office building is known to be $2.1 billion (approximately 2.5 trillion KRW).

[Image source=AP Yonhap News]

This deal is the most expensive single-building transaction since the early days of the COVID-19 pandemic last year and is one of the highest-priced building transactions in U.S. history, according to real estate data firm Real Capital Analytics.

The office building Google is acquiring is located in Hudson Square on the west side of Manhattan and was formerly known as the old freight terminal building called 'Saint John Terminal.' Situated along the Hudson River on the west side of New York City, this building is currently leased by Google. WSJ reported that Google, which holds an option to purchase the building, has decided to exercise this option in the first quarter of next year.

The new office is scheduled to open in mid-2023 after remodeling work is completed.

WSJ evaluated that Google's office purchase clearly demonstrates that despite the spread of the Delta variant delaying major companies' return to offices and extending remote work, the demand for office purchases by 'big tech' companies remains strong.

Google previously purchased a building opposite Chelsea Market in Manhattan for $2.4 billion in 2018. Amazon is also pursuing the establishment of a second headquarters in New York City.

William Floyd, Google's public policy executive, said, "Collaboration is necessary for employees to be happy and productive," adding, "Because of the need for collaboration, we are investing more money in office space."