Facebook move could bring €274m in construction work

FACEBOOK Inc’s plan to relocate its main US base to Menlo Park, California, may result in $366 million (€274m) in new temporary construction spending in the surrounding area.

The construction budget is €190m, and the project may generate €90m 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.

Social network Facebook whose European headquarters is located in Dublin, is expanding operations and adding staff while preparing for an initial public offering (IPO). The company may also attract other startups and venture-capital (VC) firms to the area, said Joanne Brion, founder of Brion & Associates.

Ms Brion said: “The potential is there to change and diversify the nature of Menlo Park’s economy.

“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.”

Facebook aims to raise about €7.5 billion in the IPO, gaining a valuation of more than €75bn, a person with knowledge of the matter has said. Facebook also is expanding satellite locations, including a new engineering centre in New York.

The company decided to move its headquarters to San Mateo County from Palo Alto because it needed more office space.

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 €22m 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.