Google’s $2.1 billion deal to buy Manhattan office buildings adds to Silicon Alley’s rapid growth, despite the growth of remote work and the declining New York office market.
Google has purchased the former St. John’s Terminal on Manhattan’s west side to expand its downtown footprint. The company had leased the 1.3 million sq ft building but exercised the option to buy the space. According to Commercial Realtors, this price is the highest amount paid to US office buildings since 2018.
It also marks the ongoing march of three big tech companies to Manhattan. Companies are swallowing large new buildings and entire neighborhoods to accommodate the growing workforce. According to real estate experts, Google, Amazon and Facebook now have more than 8 million square feet of space in Manhattan. And that number is expected to grow as businesses look for more space.
“It’s definitely a positive sign,” said Danny Mars, director of research in the tri-state region of New York and Seville.
According to brokers, Google’s latest deal takes Manhattan’s total area to more than 3.1 million square feet. In addition to the new building, we also purchased 111 8th Avenue, which occupies over 800,000 square feet of space, and the nearby Chelsea Market Building.
The exterior of the St. John’s Terminal Building will be seen on September 22, 2021 in New York. On September 21, 2021, Google announced plans to purchase an office building in New York City for $2.1 billion. Epidemic telework trends.
Bettencourt | AFP | Getty Images
Facebook is skyrocketing at Hudson Yards, leasing all 730,000 square feet of James A. Farleyville’s upcoming refurbished office space in Midtown. According to brokers, Facebook currently has more than 3.2 million square feet of space in Manhattan and is currently looking for more.
Amazon is also expanding rapidly in Manhattan, despite political backlash to cancel its massive “HQ2” plan in Long Island City. With the purchase of a former Lord & Taylor department store building for $978 million, Amazon now has about 2 million square feet of space.
Big Tech’s leasing activity helped encourage early signs of recovery in the Manhattan office market. Manhattan’s office market was hit hard by the COVID-19 pandemic and city flight. According to Colliers International, rents in August more than doubled from July, with 1.46 million square feet of office space rented in Midtown.
While technology is leading the city’s new leasing activities, the broader market is still undergoing a protracted recovery. By the end of August, only 23% of Manhattan workers were back in the office, according to the New York City Partnership Survey. According to a partnership survey, 76% of employees will return to the office by early 2022. According to Saviles, there is approximately 86 million square feet of available office space in Manhattan. According to Sevilles, availability is currently above 18%, or around a 30-year record.
According to a partnership survey, 70% of employers have a rotation or “hybrid” office schedule that allows employees to work remotely for part of the week.