Google in US$1.6b push for expansion in Silicon Valley

Google is accelerating a real estate deal spree, spending US$585 million to buy more than half of a Silicon Valley office park and agreeing to lease an entire campus in development to make space for its growing workforce.

The owner of the world's largest search engine bought six office buildings at Pacific Shores Centre in Redwood City, California, from Starwood Capital Group and Blackstone Group. It also plans to occupy all of Moffett Place, a six-tower development on 22 hectares in nearby Sunnyvale, according to Google spokeswoman Meghan Casserly.

Google has spent billions on property leases and purchases as it expands hiring and makes acquisitions. The company said in its quarterly report that it signed office leases for a total commitment of about US$1 billion up to 2028 and bought land and buildings for US$585 million, without disclosing details.

"I just can't point to another major technology company that's taken down so much real estate in a relatively short period of time," said Mark Kuiper, senior vice-president with Colliers International. "Google is a huge employer and they're putting their stake in the ground and saying Silicon Valley is our home base."

The company had 55,030 full-time employees as at September 30, up almost 19 per cent from a year earlier, the report shows.

Its most recent real estate deals involve projects developed by Jay Paul. The San Francisco-based company's Moffett Place project is 1.9 million sqft, according to its website.