Tomahawk, WI 11/06/2013 (BasicsMedia) – Google Inc (NASDAQ:GOOG) has been said to be big everywhere. The technology is operating several businesses and having good time doing that. And now its internet and devices revenue is beginning to excite real estate as well. The company is taking up a lot of office space in most tech hubs at time when real estate industry has dimmed for quite sometime now. For this reason, the world’s popular search engine is a blessing to the real estate deal makers.

Google is expanding its office floors so that it can serve its bulging customer base more effectively. Three years ago, the search engine giant bought a converted freight terminal in Manhattan midtown south for $1.84 billion. Now another deal to acquire 36,000 square feet floor space is pending and the deal could be the biggest in midtown south. The company also signed huge leases in San Francisco and Silicon Valley which are billed as the biggest in the year. Google has also multiplied its floor space in Chicago four times in the year.

What Google is doing in real estate has ripple effects. It has the tendency to draw more companies and create a place to be a business hub where everyone does business and makes good money. Look at how it has given life to the real estate dealmakers at a time when the industry was showing signs of wilting.

Looking at the U.S. rent increase, it is seen slowed down for almost three consecutive quarters now. Traditional real estate tenants and buyers such as banks have been seen to scale back in floor leases. But the Mountain View, California-base company is leading other tech companies in into the real estate acquisition foray. The picture that comes out clearly is that the slow pace in the national real estate arena hasn’t quite caught up with traditional tech hubs such as Boston, Seattle, Silicon Valley and San Francisco. These are places which are known to attract and retain innovation firms. So it is understandable why Google is out to increase its presence in these hubs with bigger than recently seen rental deals. But these tech hubs have higher rents at around 12% higher than the national average, and this should say something about the amount of investment Google is committing to its floor expansion deals.

Google deal well–timed

So far this year, Google has acquired 232,000 square feet in Chicago, 901,000 square feet in Silicon Valley and 350,000 square feet in San Francisco. The company is also seeking to double its space in Seattle, where its engineers working on Google Chrome browser are based. The clever strategy that cuts across these deals is that the leading search engine company is cutting real estate deals when dealmakers are having few businesses to execute. What this means is that the company is likely enjoy rates relief in these wholesale space acquisitions.

Google earns most of its revenue from ads. It sells ads on desktop and mobile devices. Its overall ads revenue is expected to register a jump this year and the subsequent years. The company has also entered device and software business which are its new revenue earners. Google’s stock trades above $1000 per share on NASDAQ.

DISCLAIMER: This content is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.