Elected officials in New York sought to cast Google’s announcement as a sign of the city’s rebound.
“This announcement from Google is yet another proof point that New York’s economy is recovering and rebuilding,” Gov. Kathy Hochul, a Democrat, said in a statement. “We are creating jobs, investing in emerging industries, lifting up New Yorkers, and together, we are writing our comeback story.”
Mayor Bill de Blasio called the deal “a historic investment in New York City.”
The transaction was first reported by The Wall Street Journal.
When the building opens after construction is finished in mid-2023, Google will have more than 3.1 million square feet of office space in New York, making it one of the largest leaseholders in the city.
Google’s New York presence began in 2000 with a single employee in sales who worked out of a Starbucks. The company sealed its commitment to the city in 2010 with the $1.8 billion purchase of a 15-story building in Chelsea.
Over the past decade, Google has rapidly increased its work force in Manhattan, hiring young engineers from the region’s universities, attracting tech workers who do not want to reside in Silicon Valley and expanding its marketing and sales departments. The company has added 5,000 employees in New York since late 2018.
The terminal building that will be home to Google’s new office is in Hudson Square, a neighborhood on the West Side of Manhattan that is sandwiched between TriBeCa, Greenwich Village and SoHo. Many creative, media and tech companies have offices there, including the website builder Squarespace and the eyewear company Warby Parker. Disney has also selected the neighborhood as the new headquarters for its New York office.
In addition to its office district, the area has a growing residential population, after a rezoning in 2013 led to a boom in the development of new high-rise and condo buildings.