There are office buildings from one side of New York City to the next. Some of these house small companies that most people have never heard of. Others, however, are home to some of the biggest brands in the world, including Google.
In 2010, Google spent $2 billion to purchase a property in Manhattan located at 111 Eighth Avenue. With roughly three million square feet of space, many people thought that this would be more than enough for the search engine company.
At this time, Google only occupies some of the 18-story office building, due to the fact that it had to honor leases from tenants including Barnes & Noble and Nike, among others.
By the early part of 2015, this is all set to change as the company is hoping to takeover another 500,000 square feet. Some of the companies currently doing business out of the space have a lease that is expiring. Others are being paid by Google to leave, rather than exercising their ability to renew.
With the departure of these other companies, Google will finally be able to take up more space at this pricey property. This will allow it to spend less money on rent at other office buildings in the area.
There is no lack of office space in New York City, especially for companies that are willing to pay the money. Even though Google owns a huge building, removing tenants is easier said than done. Finally, it appears that the company has found a way to make this happen, thus opening up more space.
Source: Crain's New York Business, "Google's search for more space leads home" Daniel Geiger, Jul. 29, 2014