Economy

Google to Invest More Than $1 Billion to Establish NYC Campus

Google to Invest More Than $1 Billion to Establish NYC Campus

Google already owns a city block of Manhattan that holds the Chelsea Market building, but it will expand its presence in the city once again.

Google's first NY office at 111 Eighth Avenue is one of the city's largest buildings that it bought in 2010 for US$1.77 billion.

NY is quickly becoming a hub for technology as the city provides a better option to other places that would require more investment. Google purchased that building for $1.9 billion in 2012. It intends to add another 7,000 staff there over the next 10 years as a "conservative estimate", William Floyd, its director of public policy and government relations, told The Wall Street Journal.

Mountain View, California-based Google's move to invest in prime real estate on the Lower West Side of Manhattan also underscores the growing importance of NY as a hub for innovation and an incubator for technology companies. The over 1.7 million square-foot campus is a result of lease agreements at 315 and 345 Hudson Street and a signed letter of intent at 550 Washington Street. Earlier in the year Alphabet said it was buying the Manhattan Chelsea Market for $2.4 billion, and planned to lease space at Pier 57.

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Google plans to double the number of its employees in NY to around 14,000 over the next 10 years, Porat wrote on Monday.

"New York City continues to be a great source of diverse, world-class talent- that's what brought Google to the city in 2000 and that's what keeps us here", she said.

When we came to New York City nearly two decades ago, it was our first office outside of California. Google will move into the two Hudson buildings beginning in 2020, and if 550 Washington Street is completed then Googlers will move in starting in 2022. "In fact, we're growing faster outside the Bay Area than within it", said Ruth Porat, the chief financial officer of Alphabet and Google.