Google Retains 300K-sf Footprint at 85 Tenth Avenue

As a tenant since 2014, online search giant Google has opted to retain its 300,000 square feet of office space at one of the former Nabisco factories located in Manhattan’s Chelsea neighborhood. The 8-year renewal at 85 Tenth Avenue, which is located directly across the street from 75 Tenth Avenue — the Google-owned Chelsea Market, had an asking rent of $100 per square foot. Google initially leased 180,000 square feet in 2014 at a net effective rent just under $77 per square foot through a deal that included an option to expand another 180,000 square feet upon space occupied by the Federal Government being vacated the following year according to press at the time. Over recent years, Google’s presence in the area has significantly expanded since establishing its Manhattan headquarters with the acquisition of 111 Eighth Avenue in 2010 for $1.77 billion. In 2013 the firm leased space at the Chelsea Market, subsequently purchasing the 1.2 million-square-foot building for roughly $2.398 billion in an all-cash deal in March 2018; and in 2015, committed to about 250,000 square feet at Pier 57, a former marine terminal that has since been redeveloped into a mix of office and retail space. More recently, in 2019, Google acquired the approximately 281,361-square-foot Milk Building at 450 West 15th Street, which offered the convenience of a bridge connection to the Chelsea Market.

Further expansion in the surrounding area included the creation of a new $1 billion campus for the Alphabet-owned company’s Global Business Organization, leading to a 1.24 million-square-foot lease for the entire south-end portion of 550 Washington Street. The south-end portion of the former St. John’s Terminal building has since undergone a major redevelopment and vertical expansion, Google opting to exercise its option to purchase, paying roughly $1.973 billion in January 2022. As part of the new campus, an additional 280,000-square-foot and 180,000-square-feet was initially leased at 315 and 345 Hudson Streets respectively in 2018, but currently Google is trying to sublease “300,000 square feet for the final two years of its deal” at the latter address.

Source:    https://therealdeal.com/new-york/2024/10/09/google-renews-lease-at-vornado-relateds-85-tenth-avenue/