Big Tech’s appetite for real estate continues to grow

Facebook, Amazon, Apple and Alphabet have purchased 43 properties this year

National Weekend Edition /
Nov.November 07, 2021 11:03 AM

Google’s newest New York City acquisition on the West Side of Manhattan (Cookfox Architects)

 

They’re digging their teeth into real estate.

Big Tech’s explosive profits and growth are leading to a boom in real estate acquisitions and developments for companies including Facebook, Amazon, Apple, Netflix and Google’s parent company, Alphabet — collectively known in industry parlance as FAANG.

The five tech titans own or lease terabytes of space across the country, according to the Motley Fool, thanks to their many offices, storefronts, and data and distribution centers.

Leading the way is Alphabet, which Reconomy, a commercial real estate analysis firm with a database of 50 million properties around the country, says owes 343 properties valued at $10.6 billion.

But Amazon, with its huge warehouses, is taking up the most space with its 24.2 million square feet across the US — a number that is quickly growing.

In the last 10 months, Amazon opened 250 new facilities, the financial website reported, including fulfillment and sorting centers, delivery stations and regional air hubs. Its real estate portfolio also includes office campuses in Seattle, Washington and Arlington, Virginia; a new operations center under construction in Nashville, Tennessee; and 65 Whole Foods brick-and-mortar supermarkets.

And Apple isn’t only planting roots in Silicon Valley. Sure, its 176-acre Apple Park in Cupertino, California, is its most iconic workspace, but the company is set to build a $1.3 billion data center near Waukee, Iowa — the so-called Silicon Prairie — in 2022. While its retail stores may be easy to find, most of those have small footprints in leased space.

Taken together (well, minus Netflix), the companies have purchased 43 properties this year, seven each for Facebook and Apple, 14 for Amazon, and 15 for Alphabet, which last month, plunked down $2.1 billion for 1.3-million-square-feet of waterfront space on the West Side of Manhattan. — the most expensive sale of a single US office building since the start of the pandemic, according to the Wall Street Journal.

[The Motley Fool] — Vince DiMiceli





    Related Articles

    arrow_forward_ios
    6315 11th Ave Gulfport (iStock, Heckler Realty Group, Illustration by Shea Monahan for the Real Deal)
    Tampa-area home billed as first in US to be sold as an NFT
    Tampa-area home billed as first in US to be sold as an NFT
    Lucy Guo and One Thousand Museum (1000Museum, LinkedIn)
    Silicon Valley whiz kid buys One Thousand Museum condo for $7M
    Silicon Valley whiz kid buys One Thousand Museum condo for $7M
    From left: Brian Long and Liz Day in front of 6901 Granada Boulevard (Attentive, The Carroll Group, iStock)
    Tech CEO, New York Times reporter buy waterfront Coral Gables mansion for $20M
    Tech CEO, New York Times reporter buy waterfront Coral Gables mansion for $20M
    Edward Lando with his new house (Getty)
    Goody founder pays $15M for waterfront Venetian Islands home
    Goody founder pays $15M for waterfront Venetian Islands home
    Pacaso CEO Austin Allison and one of their Miami listings (Pacaso)
    Second-home startup Pacaso expands into South Florida
    Second-home startup Pacaso expands into South Florida
    Amazon CEO Andy Jassy and Amazon founder Jeff Bezos (Getty, iStock)
    Amazon pays $85M for Sunrise fulfillment center site
    Amazon pays $85M for Sunrise fulfillment center site
    1500 Concord Terrace and Atal Bansal, founder and CEO of Chetu (Photos courtesy of Chetu)
    Software firm Chetu buys Sunrise office property for $25M
    Software firm Chetu buys Sunrise office property for $25M
    (Photos courtesy of Hitzig Militello)
    Argentine architecture firm opening first U.S. office in Miami
    Argentine architecture firm opening first U.S. office in Miami
    arrow_forward_ios

    The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

    Loading...