Google commits to $1 billion in long-term office leases

Google said it is committed to spending $1 billion to lease office buildings over the next 13 to 14 years. Google did not say where the office buildings were located in its disclosure as part of its quarterly regulatory filing with the U.S. Securities and Exchange Commission on Thursday. A source familiar with the matter, who was not authorized to discuss it publicly, said the Mountain View, California-based company was investing in new office space in Silicon Valley. Google, the world’s No. 1 Internet search company, has been looking to expand beyond its headquarters to accommodate its growing ranks of employees. The company has acquired 24 office buildings near its campus, known as the Googleplex, in recent years, according to a July report in the San Jose Mercury News. Google hopes to transform many of the purchased buildings into taller, high-density office buildings, the report said. It was not clear if the new leases were related to those buildings. Google said the new lease periods will expire between 2027 and 2028. In addition to the $1 billion lease obligation, Google noted that it was also “committed to pay a portion of the related operating expenses under these lease agreements which are not included in the total obligation amount.” The company said it was in the process of evaluating the impact of these lease agreements on its financial statements. Google’s staff grew by about 3,000 in the third quarter to more than 55,000 full-time employees worldwide. Reuters