Extra, extra! Hot off the press — big tech is investing big bucks in the office space. 

Google Spends Billions (And Then Some) On Office Assets

Recently, web giant Google paid over $2 billion on a state-of-the-art office building in New York. 

Google paid a grand total of $2.1 billion for the St. John’s Terminal building in the Big Apple. Google CFO, Ruth Porat, said that this decision will help create a “more flexible hybrid approach to work,” allowing team members to “come together in person to collaborate and build community.” 

But, that’s not all that Google is paying for real estate in NYC. The company said that they plan on investing more than $250 million this year on their brick and mortar presence in the city. 

Google and its conglomerate company, Alphabet, plan to build company-towns — massive communities combining residential living, retail, parks and recreation, and of course, company offices. Alphabet and Google are currently planning one in Mountain View, California called the Middlefield Park Master Plan. 

Amazon’s Billion-Dollar Plans for Nationwide Real Estate Presence

Google isn’t the only big tech goliath investing in commercial real estate’s office sector. Amazon is also leading the way forward by investing heavily in corporate assets all across the country. 

From offices to retail spaces to mixed-use complexes, Amazon has big plans for building a massive real estate presence in the nation’s biggest cities. 

Amazon is currently prospecting a $2.5 billion purchase on a North Virginia company complex called Helix that will include mixed-use facilities, retail stores, and office spaces. The site will include a trio of buildings, each boasting 22-stories of real estate. Amazon also plans on doing it big with the cultural amenities, with plans including an amphitheater, nature paths, and even a dog run. 

Meanwhile, Amazon is acquiring office assets in Dallas, Detroit, Denver, Manhattan, Phoenix, and San Diego. The company plans to hire 33,000 team members specializing in tech development and corporate responsibilities. The site is being designed to foster collaboration between on-site team members and attract people back into the office. 

Facebook Purchases Millions of Square Feet of Office Space

The third tech giant that is placing its bets on the real estate sector is Facebook, which is leasing as much office space as possible. 

Recently, Facebook closed a deal that gave them leasing access to 2.2 million square feet of office space in New York. Facebook also made moves to acquire 400,000 square feet to build a new corporate campus HQ. This new headquarters is being designed as an outdoor oasis for team members, with outdoor courtyards, bridges, and staircases. 

What Does This All Mean?

What can we all glean from the massive investments that big tech is making in office assets? 

We can assume that these companies aren’t investing for nothing. The bottom line is that they expect people to get back to the office in some way, shape, or form … and that office space will continue to be a core component of how a company creates, keeps, and sustains a culture. And they’re preparing to welcome team members with legendary workplace experiences. 

As I always say, there won’t be a one-size-fits-all solution. Since we unplugged the matrix, it will move, evolve and change in a way that will create the workplace of the future. That includes building infrastructures online and in the office. 

Following in big tech’s footsteps, small businesses should also think about how they can revive their real estate to help attract team members. We are all fighting for the best talent and being flexible, innovative, and creative will be key components whether you’re small or large to grow your workforce. Remember, your real estate is valuable — so invest in your offices and prepare for the future of work.