Google Is Spending Big to Add 3 New Offices in Silicon Valley
Google is adding more office buildings to its already huge presence in Silicon Valley.
The search giant is expecting to close two multimillion-dollar real estate deals for three buildings in the next few weeks, according to an internal email obtained by Fortune.
The first deal, said to close on Thursday, is for two buildings costing $225 million in Sunnyvale, Calif., located at 215 Moffett Park Dr. and 1190 Borregas Ave., Google real estate project executive Jay Bechtel said in one of the emails. Both buildings, totaling 298,000 square feet, are currently empty, he wrote.
A second $20.5 million deal, expected to close Sept. 20, is for a 27,000 square foot building in Sunnyvale, located at 270 E Caribbean Dr. Business software company JFrog currently occupies the building.
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Google declined to comment.
The deals follow Google’s decision to buy three Sunnyvale buildings from NetApp for $318.7 million, which the data center storage company disclosed in a regulatory filing on Monday. Several Google executives on the email chain noted news articles by the Silicon Valley Business Journal and Mercury News that reported on Google’s recent real estate deals.
The new deals also come on the heels of Google’s recent July purchase of several Sunnyvale properties that the Mercury News reported were worth an estimated $800 million.
Google is growing quickly and frequently needs more office space for its workforce. Lately, has been looking beyond its hometown of Mountain View, Calif. to neighboring cities for expansion including it considering a huge complex in downtown San Jose, Calif.
Google generally doesn’t provide many details about its real estate moves. Google real estate broker and CBRE Group director Todd Frye repeated that in the communication to his colleagues, saying that there is a “strong preference from the transaction team is not to comment” about its real estate transactions “unless there is a benefit to Google to do so.” CBRE Group is a commercial real estate and investment firm.
“I know some of you are grizzled vets but this policy has served Google beautifully over the years and has allowed the REWS team to perpetuate the Company’s growth in strange and surprising ways (at least to the greater market),” Frye wrote, using the acronym for Google’s real estate and workplace services group.
Update: Sept. 13, 2017 (11:32 am) This article was updated to reflect the Google declined to comment after publication.