Technology

Google to purchase Manhattan building for $2.1 billion

Google announced on Tuesday that it intends to purchase for $2.1 billion early next year a Manhattan property it has been leasing.

The 1.3 million-square-foot former freight terminal called St. John's Terminal adds to the significant collection of real estate that the search and advertising giant has in New York.

The company already owns two buildings next door, bringing the combined campus to 1.7 million square feet.

The planned acquisition suggests that Google's embrace of remote work in response to the coronavirus pandemic may not be a long-term strategy.

"New York's energy, creativity and world-class talent are what keep us rooted here and why we're deepening our commitment with plans to purchase St. John's Terminal," Alphabet and Google Chief Financial Officer Ruth Porat said in a press release. 

The announcement drew praise from local lawmakers, including outgoing Mayor Bill de Blasio (D).

"Google's historic investment in New York City marks an enormous step for our recovery," he said in a statement.

"This announcement from Google is yet another proof point that New York's economy is recovering and rebuilding," New York Gov. Kathy Hochul (D) added.

Google has more than 12,000 full-time employees in New York and plans to add 2,000 more as part of the investments in the campus.

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