The Wall Street Journal has learned from a landlord in the San Francisco Bay Area that both Apple and Google parent Alphabet Inc. are in the market for huge expanses of real estate.
The two technology giants are in need of the space to work on their projects for driverless cars, which slowly but surely are beginning to take shape, even though the companies are keeping details shrouded in mystery.
If there wasn’t enough evidence about how ambitious the projects are, Hudson Pacific Properties Inc’s chief executive, Victor Coleman, says these pieces of property are a “hot demand item” among companies interested in setting up R&D facilities for autonomous vehicles.
Coleman went on to specify that Google wants to acquire about 400,000 square feet of land, while Apple is interested in buying an area which has twice the size. WSJ points out that although these spaces are quite large, today’s car factories are usually considerably bigger. That means the pieces of land that are in high demand now are likely to be used for R&D facilities rather than for assembly plants.
And it’s not just Apple and Alphabet. Several car manufacturers have already expressed their interest to purchase massive pieces of land in the San Francisco Bay Area. That’s what Coleman said during Hudson Pacific Properties’ quarterly investor call, specifying that Toyota, Tesla, BMW, Mercedes, and Ford are on the look to set up shop in Silicon Valley.