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Google buys New York office building for $1.9 billion

Google buys New York office building for $1.9 billion

Google has spent a reported $1.9 billion on buying its office building in New York.

Google is continuing to invest heavily in property, announcing a deal to buy a building in New York rumoured to be valued at $1.9 billion (around £1.23 billion, if you define a billion as one thousand million).

Although Google's official announcement coyly refuses to discuss the money involved, the company is thought to be paying $1.9 billion to purchase its New York office building at 111 Eight Avenue, or 76 Ninth Avenue, depending on which entrance you use.

The building is being purchased from current owners Taconic Investment Partners, Jamestown Properties and the New York State Common Retirement Fund. Although Taconic Management Company retains its role in the management of the building, Google is now the outright owner.

However, Google isn't expected to start evicting the building's other tenants just yet. Instead, it's using the deal to minimise its operational costs, while generating useful income from leasing portions of the building that it doesn't need yet. This is a strategy that David Radcliffe, vice president of real estate and workplace services at Google, describes as 'a great real estate investment in a thriving neighbourhood and a fantastic city.'

If the $1.9 billion purchase figure, quoted by The Wall Street Journal and others, proves true, then it's a major coup for Taconic, which paid a mere $300 million for the property when it acquired it in 1998.

Do you think Google has made a shrewd investment decision, or is it getting spend-happy as the year draws to a close? Share your thoughts over in the forums.

35 Comments

Discuss in the forums Reply
Hustler 23rd December 2010, 12:02 Quote
Amazing what you can buy when you use every trick in the book to avoid paying taxes in every country you operate in...
B1GBUD 23rd December 2010, 12:03 Quote
"Do you think Google has made a shred investment decision"

No, but it may be shrewd?
arcticstoat 23rd December 2010, 12:11 Quote
Quote:
Originally Posted by B1GBUD
No, but it may be shrewd?

Fixed - thanks.
lacuna 23rd December 2010, 12:40 Quote
Its obviously up to Google how they spend money but why does an 'e-company' require such a prominent city centre location? They could build a purpose designed office out of the city for a fraction of the cost.
VipersGratitude 23rd December 2010, 12:47 Quote
And in other news Steve Balmer restarts development of Flight Simulator XI...
xaser04 23rd December 2010, 13:39 Quote
Quote:
Originally Posted by lacuna
Its obviously up to Google how they spend money but why does an 'e-company' require such a prominent city centre location? They could build a purpose designed office out of the city for a fraction of the cost.

This is very true. For that sort of money they could of build an enormous office building that when viewed from above either spelt "Google" or "Look how much money we have sitting around to splurge".
M7ck 23rd December 2010, 13:45 Quote
Quote:
Originally Posted by lacuna
Its obviously up to Google how they spend money but why does an 'e-company' require such a prominent city centre location? They could build a purpose designed office out of the city for a fraction of the cost.

It makes sense to buy the building since they already let parts of it. Not only will it reduce Google's operating costs by several million a year they will also have a steady income from the other tenants in the building. These are the figures that are important to stock holders.
PlayedStation 23rd December 2010, 14:00 Quote
Sorry how else can you count a billion?
logan'srun 23rd December 2010, 14:12 Quote
Quote:
Originally Posted by PlayedStation
Sorry how else can you count a billion?

(Quickly opens wallet) Well, Let me see. . . 1. . . .2. . . 3. .
John_T 23rd December 2010, 14:15 Quote
Quote:
Originally Posted by PlayedStation
Sorry how else can you count a billion?

A million million, although pretty much no-one uses that any more - other than a few starchy old farts & the occasional pedant, all trying to make some sort of point...
John_T 23rd December 2010, 14:20 Quote
Sorry, that wasn't meant as a dig at you Gareth by the way - I'm sure you just wrote it like that to pre-empt anyone 'correcting' you...
SaNdCrAwLeR 23rd December 2010, 14:49 Quote
Quote:
Originally Posted by John_T
Quote:
Originally Posted by PlayedStation
Sorry how else can you count a billion?

A million million, although pretty much no-one uses that any more - other than a few starchy old farts & the occasional pedant, all trying to make some sort of point...

actually... a billion is considered a million million in a lot of european countries still... in Portugal we still use the "thousand millions" definition to speak of US billions :P
shanky887614 23rd December 2010, 15:43 Quote
actually a million million is 1 trillion

1million= 1,000,000
1 billion = 1,000,000,000
1 trillion= 1,000,000,000,000
SBS 23rd December 2010, 16:25 Quote
Are you a short type, Shanky?
tristanperry 23rd December 2010, 16:46 Quote
Maybe they can actually provide support to AdSense and AdWords publishers now..

Anywhoo, this isn't too surprising I guess. Google spends billions per quarter on buying assets (http://www.marketwatch.com/story/google-acquisition-tally-hits-16-billion-2010-10-29 etc). And as M7ck says, this makes pretty good sense especially since they're already renting part of the building.
asura 23rd December 2010, 17:30 Quote
Billion=million.million is the old imperial way of counting back when a barrel was 33.3gallons(uk), now the international standard is; billion=thousand.million and a barrel is 42gallons(us) thing change over time for convenience... or something...
Turbotab 23rd December 2010, 17:56 Quote
In a sense, Google have brought a chunk of Apple!
Krikkit 23rd December 2010, 18:10 Quote
Can we stop with the 1 billion = 10^9 or 10^12? It's boring.
sixfootsideburns 24th December 2010, 02:37 Quote
Quote:
Originally Posted by lacuna
Its obviously up to Google how they spend money but why does an 'e-company' require such a prominent city centre location? They could build a purpose designed office out of the city for a fraction of the cost.

Well in my mind an e-company still needs employees and now they have a major hub in a major city on the east coast as well as the west coast. For people like me who are on the east coast in the USA and plan to be here for a few years its a serious draw. Google takes phenomenal care of there employees from what I've heard and read. So they are likely to bring in people who are highly qualified, but located on the east coast and not willing to relocate. Speaking from my position, there are several positions I've see posted for Google that I would love to apply for but I'm just not willing to move that far right now. With an east coast location (assuming similar jobs are available) it makes the situation much more appealing to me.

just my .02
Gradius 25th December 2010, 00:39 Quote
They payed for the LOCAL/PLACE/LAND, not the building itself.

We will know soon enough... for what purpose?

Google TV empire perhaps? :P
wafflesomd 25th December 2010, 08:22 Quote
Quote:
Originally Posted by Hustler
Amazing what you can buy when you use every trick in the book to avoid paying taxes in every country you operate in...

I wish I could avoid paying taxes.
Farfalho 26th December 2010, 23:44 Quote
Quote:
Originally Posted by SaNdCrAwLeR
Quote:
Originally Posted by John_T
Quote:
Originally Posted by PlayedStation
Sorry how else can you count a billion?

A million million, although pretty much no-one uses that any more - other than a few starchy old farts & the occasional pedant, all trying to make some sort of point...

actually... a billion is considered a million million in a lot of european countries still... in Portugal we still use the "thousand millions" definition to speak of US billions :P

You're totally right! Americans are the farts that misuse billion because they're too fat and lazy to say a thousand million!
Quote:
Originally Posted by shanky887614

actually a million million is 1 trillion

1million= 1,000,000
1 billion = 1,000,000,000
1 trillion= 1,000,000,000,000
You're american.... read what you've wrought... Million, thousand million, billion.... A trillion would be 1x10^18 because before the trillion you have a thousand billion, so it goes like this:

1 million = 1,000,000
1 thousand milion = 1,000,000,000
1 bilion = 1,000,000,000,000 (notice it's the double number of zeros!)
1 thousand bilion = 1,000,000,000,000,000
1 trilion = 1,000,000,000,000,000,000

Now go dream what would you do if you had this last amount of money
sausages 27th December 2010, 13:24 Quote
After christmas I have six pounds.
dire_wolf 27th December 2010, 14:02 Quote
Surely a thousand million is a thousand million? I always thought a billion was a million million.

You learn something new every day I guess, all it means is that all those in the rich list are only a fraction as rich as I thought they were!
paisa666 29th December 2010, 21:48 Quote
Quote:
Originally Posted by Farfalho
Quote:
Originally Posted by SaNdCrAwLeR
Quote:
Originally Posted by John_T
Quote:
Originally Posted by PlayedStation
Sorry how else can you count a billion?

A million million, although pretty much no-one uses that any more - other than a few starchy old farts & the occasional pedant, all trying to make some sort of point...

actually... a billion is considered a million million in a lot of european countries still... in Portugal we still use the "thousand millions" definition to speak of US billions :P

You're totally right! Americans are the farts that misuse billion because they're too fat and lazy to say a thousand million!
Quote:
Originally Posted by shanky887614

actually a million million is 1 trillion

1million= 1,000,000
1 billion = 1,000,000,000
1 trillion= 1,000,000,000,000
You're american.... read what you've wrought... Million, thousand million, billion.... A trillion would be 1x10^18 because before the trillion you have a thousand billion, so it goes like this:

1 million = 1,000,000
1 thousand milion = 1,000,000,000
1 bilion = 1,000,000,000,000 (notice it's the double number of zeros!)
1 thousand bilion = 1,000,000,000,000,000
1 trilion = 1,000,000,000,000,000,000

Now go dream what would you do if you had this last amount of money

I was goin to say the same.. shanky is american...

Im awake but already dreaming waht would I do with 1 trillion!!!!
sixfootsideburns 30th December 2010, 23:12 Quote
Quote:
Originally Posted by Farfalho
You're totally right! Americans are the farts that misuse billion because they're too fat and lazy to say a thousand million!

Oh please... tell us how you really feel. Because by all means being a dick in the forums is a good thing.
Cthippo 31st December 2010, 03:48 Quote
It's also true that most of the financial transactions for the country take place in NY, so being physically closer to the markets is an advantage.
Bauul 5th January 2011, 13:35 Quote
Quote:
Originally Posted by Farfalho
You're american.... read what you've wrought... Million, thousand million, billion.... A trillion would be 1x10^18 because before the trillion you have a thousand billion, so it goes like this:

1 million = 1,000,000
1 thousand milion = 1,000,000,000
1 bilion = 1,000,000,000,000 (notice it's the double number of zeros!)
1 thousand bilion = 1,000,000,000,000,000
1 trilion = 1,000,000,000,000,000,000

Now go dream what would you do if you had this last amount of money

So what's a thousand thousand? Oh that's right, a million!

By your logic, a million should be 1,000,000,000 (a thousand times bigger than a thousand thousand) but it's not.

It's simple, you just assign a new word every time you get a thousand times bigger.

Thousand ones is a thousand.
Thousand thousand is a million.
Thousand million is a billion.
Thousand billion is a trillian etc.

The old fashioned rule just gets complicated.
Journeyer 2nd February 2011, 11:35 Quote
I am norwegian, and we count like so:

1 million
1000 million = milliard
1000 milliard = 1 billion
1000 billion = 1 billiard
1000 billiard = 1 trillion
...

I don't see the problem. ;)
M7ck 2nd February 2011, 11:43 Quote
So in Norway a thousand billion = a billion?
Farfalho 8th February 2011, 02:22 Quote
Quote:
Originally Posted by sixfootsideburns
Oh please... tell us how you really feel. Because by all means being a dick in the forums is a good thing.

I've already said. Need help reading?:| If you got offended, sorry then, by no means I meant to act like a dick but I believe I wasn't so far off it regarding to usa

Every news with the american dollar in it makes people believe something that isn't used in their own country and for your information: One time I also thought like that and in Trivial Pursuit (not a Portuguese game as you can imagine) I answered to the question: "How many zeros has a billion?" with "9 zeros!".... WRONG! 12 zeros. Go fish ;)
Farfalho 8th February 2011, 02:24 Quote
Quote:
Originally Posted by Bauul
So what's a thousand thousand? Oh that's right, a million!

By your logic, a million should be 1,000,000,000 (a thousand times bigger than a thousand thousand) but it's not.

It's simple, you just assign a new word every time you get a thousand times bigger.

Thousand ones is a thousand.
Thousand thousand is a million.
Thousand million is a billion.
Thousand billion is a trillian etc.

The old fashioned rule just gets complicated.

You can search that is how it's counted and properly done. Don't blame me for creating the names, just make people notice what I once thought was right. I believe it might get complicated due to people getting use to say the american way. Say as you want, freedom of speech, yeah. I've only brought something to light that is useful for some;)
M7ck 8th February 2011, 09:31 Quote
Quote:
Originally Posted by Farfalho
How many zeros has a million?" with "9 zeros!".... WRONG! 12 zeros

Huh?...............One million = 1,000,000 = 6 zeros. Where did you get nine from and where the hell did TP get twelve from?
Farfalho 10th February 2011, 21:42 Quote
Quote:
Originally Posted by M7ck
Huh?...............One million = 1,000,000 = 6 zeros. Where did you get nine from and where the hell did TP get twelve from?

O shite! I meant a billion :(

How many zeros has a billion? - that's the right question:o
M7ck 10th February 2011, 21:44 Quote
By my reckoning a billion has 9 zeros but I am sure others will disagree.
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