Facebook Move May Generate $366 Million in New Constructionby
Facebook Inc.’s planned relocation to Menlo Park, California, may result in $366 million in new temporary construction spending in the surrounding county, according to study commissioned by the company.
The construction budget is $250 million, and the project may generate $116 million in additional activity, economic research firm Brion & Associates said in a study of the impact over three to four years. It may also mean 2,441 temporary construction jobs, according to the research, released today.
Facebook, the largest social network, is expanding operations and adding staff while preparing for an initial public offering. The company may also attract other startups and venture-capital firms to the area, Joanne Brion, founder of Brion & Associates, said in an interview.
“The potential is there to change and diversify the nature of Menlo Park’s economy,” she said. “Employees may leave Facebook and set up their own companies. VCs could be attracted to the area. Facebook will need goods and services as they grow.”
The company’s impact may compare with how Apple Inc. has changed Cupertino and Google Inc. has altered Mountain View, the California cities where each has its headquarters, she said.
Facebook aims to raise about $10 billion in the IPO, gaining a valuation of more than $100 billion, a person with knowledge of the matter has said. Facebook also is expanding satellite locations, including a new engineering center in New
The company decided to move its headquarters to San Mateo County from Palo Alto, which is located in Santa Clara County, because it needed more office space for a burgeoning staff. The new headquarters are designed to eventually house as many as 9,400 employees in two adjacent sites. A draft environmental impact report of the move was released this week.
The shift may also result in $29 million in total annual retail spending at nearby lodging and retail businesses, Brion & Associates said. The findings were previously covered by the Almanac Online, which reports on community news in Menlo Park.