Google already owns a couple of massive office buildings in New York City, but it looks like it's not enough. According to a report from The Wall Street Journal, the tech giant is on the hunt for more space. Real estate executives who are "familiar with the hunt" state that Google is in talks with several landlords and is trying to lease as much as an additional 600,000 square feet of space in the Big Apple. The office space would be used for more than 3,000 employees to work from.
The physical growth from Google and other tech companies in NYC is indicative of the explosion that the entire technology sector has seen in the past decade. Many of the companies from California like Facebook, Twitter, and Yahoo are establishing footholds in New York and are looking for talented software engineers and other employees that prefer to live on the east coast of the United States.
Google already has over 750,000 square feet of space in the Chelsea neighborhood of New York City. This is split between two properties, including a huge building that the company purchased in 2010 for a whopping $1.9 billion. Google's headquarters in Mountain View, California are much larger than any of its NYC offices, coming in at over 7.3 million square feet of total space. Some of that is leased, some of it is owned. The NYC offices are the Google's second largest grouping of office space for its employees.
The tech sector can be volatile, and landlords in NYC have to adjust accordingly. The dot-com bubble in the later part of the 1990's was a booming time for real estate, but when the bubble burst it left landlords with problems. So far, this tech boom is slower and seems more stable than the last one, but these things can be fickle.