Google, Facebook, LinkedIn Want to Make Sure They Have Space to Grow

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Some of Silicon Valley’s biggest companies are on a real estate buying binge, paying premium prices to make sure they have enough space for future expansion. Facebook is the latest to dive in, agreeing in February to spend $395 million for Menlo Science and Technology Park, a jumble of 21 low-slung warehouses and office buildings 30 miles southeast of San Francisco (CA). It’s now home to an orthopedic surgical tools company, a supermarket distribution center and a storage facility for an office-furniture company. “We’re going to grow over time,” said John Tenanes, head of real estate for the social-networking giant, whose headquarters are across the road. “We just want to be prepared when that happens.”

In 2014, Google paid more than $1 billion to buy at least 19 properties in Silicon Valley, ranging from warehouses near its headquarters in Mountain View (CA), to a 935,000-square-foot office portfolio in nearby Redwood City (CA). In all, it has spent more than $2.5 billion on property in the area since 2005. “It’s a race for space,” said Jed Reagan, an office market analyst at Green Street Advisors. “A lot of these companies are growing like crazy and the Silicon Valley and San Francisco markets are getting very tight.” It is driven, he said, by “a very bullish view of the world.”


Google, Facebook, LinkedIn Want to Make Sure They Have Space to Grow