Google’s new campus in Hudson Square
Posted by Wei Min Tan on December 19, 2018
Google will be moving into Hudson Square, the neighborhood south of West Village and west of Soho. In its announcement, Google says it will invest $1 billion in its Google Hudson Square campus which will cover 1.7 million square feet. The new offices will be leased space at 345 Hudson Street and 550 Washington Street. The Hudson Square location will house Google’s sales division, the Global Business Organization. The move is expected to start in 2020.
This is welcome news for Hudson Square, a mainly commercial neighborhood, much less known than its famous neighbors West Village and Soho.
How Google’s Chelsea campus impacted the area
Google’s main New York office is at 111 Eight Avenue. It was one of NYC’s largest real estate transactions when Google bought the building for $1.77 billion in 2010. Earlier this year, Google announced a $2.4 billion acquisition of Chelsea Market, which is next door to Google’s main building at 111 Eight Avenue.
Since Google moved to Chelsea, it transformed the Chelsea and Meatpacking neighborhoods by attracting high end restaurants and entertainment spots. For example, establishments such as Fig and Olive, STK, Morimoto, Buddakan and Tao Downtown are fancy restaurants attracting the high tech and fashion crowds.
Hudson Square will be changing
Currently the Hudson Square neighborhood still has much room to develop in terms of restaurants and entertainment.
There are three new residential developments on Charlton Street: Greenwich West at 110 Charlton (about $1,900 per sqft), Toll Brothers’ 77 Charlton ($2,000 per sqft) and Extell’s 70 Charlton ($2,000 per sqft). Greenwich West and 77 Charlton are in pre-construction stage while 70 Charlton is completed.
New additions to the Hudson Square neighborhood include the trendy Hotel Hugo and WeWork. Over the next two years, we expect to see many more new restaurants catering to the new condo residents and Google employees.
Property prices in Hudson Square are currently selling at a discount to West Village and Soho. As with Google’s move to Chelsea years ago, prices in Hudson Square will be increasing as the infrastructure (restaurants, cafes, coffee shops etc) improves. Currently, Related’s rental building 261 Hudson Street, priced at a whopping $92 per sqft, has almost no inventory. For context, the Manhattan average rent is $66 per sqft. This shows there is demand for luxury property in Hudson Square.
This is a neighborhood that is bound for change.