Posted by: Rachael King on December 8, 2011
By Olga Kharif
Facebook Inc.’s decision to relocate 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 while preparing for an initial public offering. The company aims to raise about $10 billion in the IPO, which would value it at more than $100 billion, a person familiar with the matter has said. Facebook also is expanding its satellite locations, including a new engineering center in New York.
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. Draft environmental and economic impact reports of the move are being 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.