Paul Darrah and John H. Banks/ photo by Ed Lederman

NEW YORK CITY—Paul Darrah, director of real estate NYC at Google, formerly was an architect before Michael Bloomberg tapped him to head real estate for Bloomberg LP. So, he has been around the block in navigating the city's real estate terrain. Speaking with the Real Estate Board of New York's president John H. Banks, at the association's members spring luncheon, Darrah emphasized that any companies coming into New York should ask how they impact the community where they are residing.

“For us, since we started our New York presence, we have partnered with the local community. We have partnered with local officials. We have contributed in significant ways to the local community. That's how we have grown, matured and developed our presence in New York,” said Darrah. “I think it's a good strategy and it has been good for us.”

Google is growing in New York City at a rate of 1,400 people per year. They are now at 7,000 employees. He listed the talent pool, diversity and innovation as what attracts Google to the city. Next to Mountain View, CA, Manhattan is the search engine giant's largest location.

The sprawling tech company's Big Apple domain includes 85 Tenth Ave., 111 Eighth Ave., Chelsea Market, Pier 57 and now the Google Hudson Square campus that encompasses 315 and 345 Hudson St. and 550 Washington St. (known as St. John's Terminal). Yet Google never encountered the resistance comparable to Amazon's HQ2 plans in Long Island City.

Amazon, with its non-disclosure agreement, $3 billion in tax incentives and then the helicopter pad for senior executives, was at times described as “shaking down” the city. It didn't help that Amazon's market cap hit $1 trillion and its CEO Jeff Bezos is the wealthiest person alive.

Google drew a contrastingly different narrative, announcing plans to invest $1 billion in developing its Hudson Square campus—with no tax incentives required. With its lease at Pier 57, it included a 50,000-square-foot space for public activities including educational and cultural programs. It's also funding construction of the landing at the pier for water-borne public transportation. The development of Pier 57 is still underway.

Darrah referred to Google's partners at Pier 57, RXR Realty and the Hudson River Park Trust, as leading the charge with the ferry service. But he noted it has been very well received with ridership that speaks for itself. Calling the service a “game changer,” Darrah added, “It was a critical transportation tool New York was missing particularly in the waterfront and is clearly a way to connect a lot of our communities.”

In addition, Darrah pointed out Google Ventures helps and funds New York City startups. Since 2011, Google has provided $150 million dollars in grants to various organizations. “It speaks to our commitment to the community and the city but also enables the communities to grow and be vibrant,” said Darrah. He stated this was a practice not just in New York but throughout the cities where Google has offices.

A Feb. 15, 2019 Washington Post headline read, “Google reaped millions in tax breaks as it secretly expanded its real estate footprint across the US.” The article reported how Google received $10 million in tax breaks for a data center development in Midlothian, TX, using a company named Sharka. However, there was no indication that Google has yet used any shell corporations for tax incentives relating to its Manhattan developments. Plus, starting or expanding a business in New York City vastly differs from smaller locations, like Midlothian.

Scoring another point for its reputation, a Google policy allows employees to commit 20% of their time to passion projects. This again supports their strategy by encouraging Googlers to go outside the company, have influence and create partners in the community.

Instant Insights /

Very Different Narratives of Google, Amazon and NYC

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