Google Boosts US and UK Property Market by Billions of Dollars

Tech giant Google has provided the US and UK property market with billions of dollars worth of investment after snapping up and building a massive global office space portfolio.

In the US, the owners of the world's most popular search engine bought a converted freight terminal for $1.84bn (£1.14bn, €1.4bn) almost three years ago and is currently waiting on a pending deal in Manhattan for about 360,000 square feet.

According to brokerage Cushman & Wakefield, Google signed 2013's biggest leases in California's Silicon Valley and San Francisco.

Google snapped up a 350,000 square feet place in San Francisco to expand its Hills Plaza lease. It also gained a 901,000 square feet in Silicon Valley near its headquarters in Mountain View.

According to Jones Lang LaSalle, Silicon Valley, Boston, San Francisco, and Seattle command 12% higher rents than the US average.

It has also agreed to a fourfold jump of its space in Chicago where it has a 15-year agreement for 200,000 square feet at a converted cold-storage warehouse in the former meatpacking district.

In the UK, Google is scheduled to open its London headquarters in 2016, after it purchased a 2.4 acre site worth $1bn.

However, after the campus is created, it set to exceed $1.6bn in value.

Announced in January, the HQ is located between Kings Cross and St Pancras railway stations, and will feature an open-air swimming pool, indoor football pitch and a climbing wall.

Known as Googlers, Google staff can cycle into the building along purpose built paths and into the 20,000 square foot cycle shed - the size of a large house - complete with lockers and showers.

Google posted a 36% surge in third quarter profit this year, reaching $2.97bn after higher ad volumes. Shares have since surged to $1,000 which is 44% up on the year.

"Google is a monster engine everywhere, and we're pretty thankful they're in our world," said Bob Chodos, a principal at brokerage Colliers International in Chicago, in a media report.

"Companies like that draw other companies and create places where people want to do business."