Google is reportedly looking to expand its presence in New York City by purchasing a $2.4 billion building in the Meatpacking District. As explained by The New York Times, the search engine giant is in talks to buy Chelsea Market.
The former headquarters of the National Biscuit Company, Chelsea Market is a massive 1.2-million-square-foot building on 9th Ave. It currently serves as a shopping mall, grocery store, TV production facility and commercial office space. Assuming Google’s plan follows through, however, it may soon be converted into a new workplace for the tech company.
While Google has yet to publicly confirm details of the Chelsea Market acquisition, executives close to the deal say it has already signed a $2.4 billion contract with the building’s current owner.
Of course, Google already has a strong presence in the Big Apple. The search engine giant owns the Art-Deco building at 111 Eighth Ave, which happens to be across the street from Chelsea Market. At nearly 3 million square feet, it’s one of the world’s largest buildings owned by a tech company. Google purchased the Art-Deco building in 2010 for an estimated $1.9 billion. Prior to 2010, Google had leased the building.
New York City has become a central hub for many big-name tech companies. Apple, for instance, has an office on Fifth Ave, and Microsoft has an office in the heart of Times Square. Furthermore, Amazon recently selected New York City as one of several potential cities in which to open its second headquarters. The e-retailing giant says its new headquarters will create more than 50,000 jobs. Other cities on the list for Amazon’s expansion include Atlanta, Boston, Chicago, Dallas, Miami and Los Angeles.
Furthermore, reports show that tech companies accounted for roughly 8 percent of all commercial office space in The Big Apple. To put that number into perspective, tech companies only accounted for 5 percent of the city’s commercial office space in 1999. So, what makes New York City such a popular location for tech companies like Google, Apple and Microsoft? One reason for its popularity is its close geographic location to other businesses. Tech companies in New York City can easily connect with clients and vendors alike to streamline their processes. Additionally, businesses can take advantage of tax incentives offered by the city, state and federal government.
Assuming Google purchases Chelsea Market, this deal will strengthen its physical presence in the country’s most populous city.