Silicon Valley Business Journal reports that YouTube has acquired a massive new office park near its current San Bruno headquarters. The Bayhill Office Center comes in at 553,328-square-feet and consists of five buildings. YouTube paid $215 million for it, which comes out to around $388 per square foot. Youtube acquired the space from Hudson Pacific Properties, which purchased it from Blackstone Equity Office just last year.
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Current tenants in the Bayhill Office Center include Walmart Labs, Oracle, and a variety of other smaller companies. While Google hasn’t detailed its plans for the space, it has said in the past that while it appreciates its tenants, it generally needs the spaces it purchases for its own growth. “We like all our tenants, but we need the space. The reality is that virtually everything we’ve bought ultimately has the goal of occupancy, not as an investment,” Google Project exec Jay Bechtel stated last October.
YouTube’s expansion in San Bruno shows that it is continuing to grow and expand at an extraordinary rate. It remains to be seen what exactly the company will do with the space, but there are a variety of possibilities. YouTube could construct more studios as it has done in cities like Los Angeles. It could also use the added office space to bring on more staff for services like YouTube Red, the $10/month subscription streaming service. YouTube has yet to comment on its Bayhill Office Center acquisition except to confirm it.
Image Credit // Silicon Valley Biz Journal