It was reported recently Google has paid $1 billion for a new office park in Mountain View, California. The purchase brings the total amount spent by the tech giant on property to more than $3 billion over the past two years.
Google Has Spent $3 Billion on Silicon Valley Property Over the Past Two Years
The property is a familiar one for Google. The tech company was already the main tenant of the 12 building, 51.8 acre Shoreline Technology Park, but will now own the property outright. The purchase is part of $2.8 billion spent by the company over the past two years on property in-and-around Mountain View, Sunnyvale, and San Jose. Add to this the parking lots and government-owned parcels in downtown San Jose, and the tech company has purchased more than $3 billion in property over the period.
Bolstering Google’s Mountain View Headquarters
The new Mountain View property sits just a blocks from Google’s headquarters. According to Chad Leiker, vice president of the commercial real estate firm Kidder Mathews, “This is an opportunity for Google to own more office space very close to their headquarters. That office space is becoming very rare in Mountain View.”
The deal appears to be part of Google’s plans for the future as well. According to Mr. Leiker, “This latest deal in Mountain View could be a case, as they have done in other areas, of Google land-banking properties for higher-density uses later. They have bought a huge tranche of properties.” The location also sits directly across the street from the site where Google plans to build its new iconic ‘dome’ campus as well.
Buying Property Outside of Silicon Valley
Along with the Mountain View site, Google has also been spending outside the area as well. Earlier in November, Google agreed to purchase a new property in San Jose for $110 million. The purchase consists of 10.5 acres of downtown property with the option to purchase another 11 acres at a later date. Earlier this year Google also paid $2.4 billion for a New York City property in the Chelsea Market of Manhattan. All of this buying seems to signal Google plans to further expand in the U.S. for years to come.