Google Makes $13 Billion Real Estate Play

Google Makes $13 Billion Real Estate Play

Feb. 18, 2019

Google’s commercial real estate expansion continues, with plans to invest an additional $13 billion in data centers and offices throughout the U.S. in 2019, according to Globe Street.

While the tech giant has been a force in many real estate markets across the country, this announcement carries significant impact across many markets. Here’s a breakdown of the economic benefits to the various markets. Google will be:

  • Adding tens of thousands of new employees
  • Generating 10,000+ construction jobs
  • Moving Wisconsin operations to a larger office
  • Doubling the Virginia workforce
  • Adding offices in Georgia, Texas, the Boston area, Los Angeles, and Washington state, among others

This comes on top of Google’s previously announced 1.7 MSF Hudson Square office expansion in lower Manhattan.

A Look at Google’s Real Estate Needs

While much of this activity involves moving into newly built or existing space, there also are redevelopment plans in the works, according to Bisnow. The company’s footprint in New York City, for example, is mainly repurposed manufacturing space on Manhattan’s West Side, which included its $2.4 billion purchase of Chelsea Market last year.

And, a big shift involves Google’s expansion in the data center sector, with centers planned in Nevada, Texas, Nebraska and Ohio. Here’s a quick rundown by region:

  • Midwest/Chicago — Google recently announced plans to lease 132,000 square feet in a new building at 210 N. Carpenter Street in Chicago’s Fulton Market, the same neighborhood where its 372,000-sf Midwest headquarters is located.
  • Midwest/Wisconsin — Google’s office is set to expand soon. New data centers are under development in Ohio and Nebraska.
  • South — Google will open new offices in Georgia and Texas and expand its office and data center in Virginia. Data center expansions are also on tap for Oklahoma, South Carolina, while a new office and data center will be built in Texas.
  • Northeast — look for an expansion of Google’s sales and engineering community in Massachusetts and the development of a significant product, engineering and business hub in New York’s Hudson Square campus.
  • West — Google will expand its Washington office and redevelop the Westside Pavilion and Spruce Goose Hangar in Los Angeles. The company will open its first data center in Nevada.

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