Monday - Sep 25, 2017

Google continues to grow in Mountain View

Google continues to grow in Mountain View

According to reports in the real estate industry, search engine giants Google Inc. is in the advanced stages of negotiating to buy a 400,000-square-foot office park situated in the heart of Mountain View, when most of their activities are concentrated.

If all goes according to plan, the $250 million deal will be the largest that Google make in the densely packed Silicon Valley real estate market so far during 2014.

According to industry sources, Google has agreed in principle to lease the property which they will be paying $625 per square foot for the 1 million-square-foot campus, covering 24 square acres, which will set a record in the region.

The Middlefield campus that Google is buying consisting of four separate buildings was constructed sometime during the eighties, and is currently occupied by electronic design automation company Synopsys Inc., who will be vacating the property sometime next year to move to a new office block almost adjacent.

Google’s interest in the property, situated at 700 E. Middlefield in the city, and their willingness to pay such a high price once again gives evidence of the need of all the key players in the high-tech industry who are centered around Mountain View, as well as its neighbouring cities of Palo Alto, Los Altos, and Sunnyvale, to find suitable office space to house their ever-growing and diversifying activities.

Within the last two years alone, according to market experts, Google has signed leases well in advance of $330 million to rent or buy eleven properties in Mountain View and surrounding areas, making them the leading tenant in the region, both in terms of number of properties that they occupy as well as total square footage.

Google now controls vast parcels of land situated between Palo Alto to Mountain View even covering some of Sunnyvale, all of them linked to Highway 101. Larry Page and Serge Brin, billionaire cofounders of Google will soon be taking possession of the nearby Moffett Federal Airfield, with an agreement already in place to lease the airfield from the US government.

Estimates are that Google’s most recent property acquisition deal could be completed within a matter of weeks rather than months, understandable when you consider that they are reportedly willing to pay $625 per square foot for the property, not far above double the average sale price of office space in what is described as “the suburban metro market” which Mountain View still falls into the category of being.

With Google’s revenue increasing by 19 percent in the first quarter of 2014 to $15.2 billion, up from $12.94 billion for the same period last year, it may even be understandable that they are willing to pay such a premium to maintain continuity in their dynamic business activities, and if not capable of keeping them out all under the same roof at least somewhere in the same location.

According to locals, whilst it is very attractive to have the majority of the major players in the high-tech and social media industries within a very minor foot print, it is undoubtedly reaping some havoc particularly the heavyburden that the areas infrastructure and particularly its roadways have to bear, with traffic jams being intense during the morning and evening rush hours.

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