That’s right, I said billion. Google has actually been the largest tenant at the the old Port Authority building on 111 Eighth Avenue on the city’s West Side for some time now (they began leasing space in 2006), but closed a deal Wednesday to purchase the 3 million square foot building. While the $1.9 billion purchase price is hardly a steal, Google is most likely more interested in the fiber sitting under the building as it is in the real estate.
As Wired described it,
111 Eighth Avenue is no ordinary humongous building. As it happens, the structure sits almost directly on top of where the Hudson Street/Ninth Avenue fiber highway makes a dog-leg to the right before heading north-east toward the Upper West Side.
In New York City, fiber-optic cables travel in large bundles underneath the asphalt.
Thus, 111 Eighth Avenue has become known as one of the most important so-called telecom carrier hotels on the Eastern seaboard, if not the entire United States.
Handy for Google to own that, don’t you think?
For its part, Google took a bit different approach in describing the property acquisition in a blog post Wednesday:
We believe that this is a great real estate investment in a thriving neighborhood and a fantastic city.
Like the city, our New York office is a melting pot of cultures and ideas—it’s home to Googlers from more than 35 countries who speak more than 40 languages. They live in the five boroughs and spread across the tri-state area. We’re excited to continue to build our presence there.
If making one of the largest real estate deals in New York history counts as “building their presence”, then they certainly have reason to be excited. While Google intends to allow the existing management company to continue handling the daily operations and dealings with the other current lessees, one has to wonder what the next few years will hold as those leases expire.
With such prime access to New York’s extraordinary data pipes and a cash purchase through which the city of New York made $46 million in transaction taxes alone, there is definitely more to this deal than the need for office space. 111 Eighth Avenue, after all, has half again the square footage of the Empire State Building and Google now owns it.
Merry Christmas, Google.
Chris Dawson is a freelance writer and consultant with years of experience in educational technology and web-based systems. In 2011, he became the Vice President of Marketing for WizIQ, Inc., a virtual classroom and learning network SaaS provider.
Disclosure
Christopher Dawson
Christopher Dawson is the Vice President of Marketing for WizIQ, Inc., by day and a freelance writer and educational technology consultant by night. Well, most of his colleagues at WizIQ are based in India, so really he's working with them whenever he can stay awake. He has worked for his local school district as a teacher and technology director, for the Johns Hopkins University School of Public Health, and for Biogen, Inc. (now Biogen-IDEC, Inc.).
He has also consulted with STATNet and Cytyc Corporation and retains close ties with X2 Development Corporation (now owned by Follett Software, the supplier of the student information system he administered for several years). Follett is paying him a monthly honorarium to act as a presenter for their "SIS Voices for Student Achievement" community (he produces occasional blog posts and hosts a monthly webinar on the use of student information systems to inform data-driven instruction and school-wide change.
He regularly purchases and/or recommends Dell hardware. This is because Dell makes good hardware and has truly committed itself to education in innovative ways, particularly with their "Connected Classroom" initiative. It isn't because he has dealings with the company through his role at WizIQ (which he does) or because they have provided him with long-term loans of a variety of equipment for in-depth testing (which they have).
Intel (reference designer for the Classmate PCs he has implemented in his local schools) has provided him with long-term loans of Classmate PCs for testing, as have Dell and Lenovo with their educational offerings. He may report on any of these companies as his experiences with them have direct bearing on educational technology; positive reports are not necessarily an endorsement and he receives no direct financial compensation from these companies or any others.
Intel paid all expenses for his attendance at the 2009 Intel Classmate PC Ecosystem Summit which he attended as the sole representative of the technology press. He was invited to attend in 2010 but his wife would have killed him if he spent 3 days in Vegas geeking out and left her home alone with a new baby. Acer provided him with a 50% discount on an Aspire One netbook in early 2009 after he tested it for 30 days through their educational seed program. He liked the netbook at the time but it has since broken and sits unused in his office. Canonical sent him Ubuntu lanyards, t-shirts, and mousepads for his kids. He stole one of the lanyards and proudly hangs his keys from it and occasionally features his 8-year old wearing an oversized Ubuntu t-shirt on his Facebook profile. Gunnar Optiks sent him a pair of computer glasses to evaluate for a holiday gift guide. He is wearing them now as he types this because they never asked for them back and they rock out loud. Seriously - they work brilliantly and make it much easier to spend 20 hours a day staring at an LCD. If they ever asked for them back, he would fork over the $99 and buy a pair.
Microsoft gave him 2 free copies of Office 2010 professional, a desktop clock, and a useless book on Office 2010 when he attended the launch of Office/Sharepoint 2010. He occasionally uses the SharePoint lanyard they gave him instead of the Ubuntu lanyard for his keys, but feels dirty afterwards.
Adobe provided him with a pre-release version of the CS5 Master Collection for evaluation and ultimately provided a full, licensed copy for ongoing testing of educational applications of this admittedly expensive software. Like the Gunnars, if the license expires or they come out with CS6, he'd actually go out and buy it himself. Which is saying something, because he's actually pretty cheap.
Any other companies wishing to send him cool things to evaluate, wear, or otherwise adorn his kids are more than welcome to; he promises to disclose it here if he keeps any of the stuff.
Finally, because WizIQ is a virtual classroom and learning network provider, Chris, as VP of Marketing, frequently interacts with, seeks out deals with, and directly or indirectly competes with a whole lot of LMS, SIS, and other Education 2.0 companies. In general, he'll limit his reporting about these companies to news that does not impact his relationship with them or with WizIQ. If he reports on them, it's because what they are doing is newsworthy or worth the attention of his readers and not because he's trying to broker some deal, damage competition, or otherwise advance his position in his day job. LMS and SIS companies, along with other online learning communities, are a pretty important part of Ed Tech. If he stops reporting on them completely, there won't be a whole lot left. He'll be sure to call out any overt conflicts of interest if they are unavoidable.
Finally, Follett Software Company pays him a little tiny honorarium every month to present on their SIS Voices webinars and to write the occasional blog or discussion thread for them. Since Follett recently bought X2 (maker of an awesome web-based SIS that Chris just happened to have used, served in advisory groups for, and frequently reported on), this is probably also worth disclosing.
Biography
Christopher Dawson
Christopher Dawson grew up in Seattle, back in the days of pre-antitrust Microsoft, coffeeshops owned by something other than Starbucks, and really loud, inarticulate music. He escaped to the right coast in the early 90's and received a degree in Information Systems from Johns Hopkins University. While there, he began a career in health and educational information systems, with a focus on clinical trials and related statistical programming and database modeling. This focus led him to several positions at Johns Hopkins, a couple-year stint in private industry, teaching high school math and technology, and 2 years as the technology director for his local school district. Most recently, he started his own consulting business and is now the Vice President of Marketing for WizIQ, Inc., a virtual classroom and learning network provider.
He lives with his wife, five kids (yes, 5), 2 dogs, and a hateful cat in a small town in north-central Massachusetts. Although he is no longer teaching, his roles with WizIQ and ZDNet allow him to continue helping students and teachers add value to education with technology rather than merely adding to the bottom line.
