Google Makes Biggest Office Building Purchase Since Pandemic Started With NYC Buy

On Tuesday, Google Inc. announced what is considered the biggest purchase of an office building by a company since the start of the COVID-19 pandemic. In a blog post, the company said it would be purchasing a New York City office building for $2.1 billion as part of its plans to build on its presence in the Big Apple.

"Google has been fortunate to call New York City home for more than 20 years. New York’s vitality, creativity and world-class talent are what keep us rooted here," Google wrote in its announcement. "It is why we’re announcing today that we are deepening our commitment to New York and intend to purchase the St. John’s Terminal in Manhattan for $2.1 billion, which will serve as the anchor of our new Hudson Square campus."

Office building prices in the U.S. have been depressed from gutted demand brought on by the COVID-19 crisis. Stay-at-home orders and remote working arrangements have increased vacancies in buildings across the country, and the emergence of the Delta variant has added to the difficulties.

Some firms may be initiating plans to bring workers back to the office, but a number of them are postponing returns until 2022. Google has said that its employees can remain at home working until January.

Google made it a point to highlight the benefits it hopes to bring to the local community with its expansion. This has included granting certificates to the State University of New York's SUNY For All programs, donations to New York-based nonprofits, and plans to build a more diverse workforce by recruiting in cities like New York. The company also promises that the new building will offset its carbon footprint, a move that would be in line with the state's and city’s climate goals.

New York officials have cheered Google’s decision to expand on its presence in the city. Gov. Kathy Hochul praised the move and it is “yet another proof point that New York’s economy is recovering and rebuilding.” Mayor Bill de Blasio also offered his compliments to the deal, saying that it will “ensure New York remains a global leader in technology as well as a place that people are excited to live and work in.”

The building is being purchased from Oxford Properties and expects to close a deal with it by the first quarter of 2022. The building will not come into operation until mid-2023, but it will represent the biggest Google office outside of its home state of California when it is complete.