Report: Google To Spend $245M On New California Real Estate

September 13, 2017 - Written By Dominik Bosnjak

Google is set to complete two major real estate purchases in California this month, Fortune reported on Tuesday, citing one of the company’s internal email chains. One of those deals is said to be a $225 million purchase of two Sunnyvale buildings located at 1190 Borregas Avenue and 215 Moffett Park Drive, according to an email from the company’s Real Estate Project Executive Jay Bechtel. The two buildings are currently empty and encompass 298,000 square feet, Mr. Bechtel was quoted as writing, with that particular deal being expected to be concluded tomorrow, September 14. The third Sunnyvale property located at 270 East Caribbean Drive is said to span 27,000 square foot and set the company back $20.5 million, the same source reported. The entire building is currently occupied by JFrog, a software management and distribution firm with a global clientele.

News of yet another one of Google’s physical expansions comes shortly after the company received a preliminary approval to develop and remodel a district in downtown San Jose, though that move was largely public in nature due to the fact it was and still is subject to regulatory approval. All three of the company’s new offices which are to be acquired as part of the two September deals are seemingly being purchased from private parties and hence aren’t subject to any public disclosure from local administrations. The same applies to the tech giant’s $820 million land acquisition in Sunnyvale which reportedly took place earlier this summer. While Google’s specific plans for its new offices are still unclear, the company’s recent real estate deals are all part of a pattern which indicates that Google is primarily looking to expand to areas close to its Mountain View campus and not leave the Silicon Valley, i.e. the southern portion of the San Francisco Bay area.

The Alphabet-owned company has been unsurprisingly busy this year, having already debuted a wide variety of products, services, and initiatives spanning numerous industries. Its next major announcements are expected to follow early next month, with industry sources claiming that the Pixel 2 smartphone series and a number of other Internet-enabled products like a smaller Google Home unit will be unveiled at a special consumer electronics event on October 5.