Google Opens in Ann Arbor

AdWords operations occupy temporary space on Main Street
Ann Arbor News – September 18, 2006

By Jenny Rode

Google is open for business in Ann Arbor as of today.

The fast-growing Internet company opened a temporary office at 112 S. Main St. in downtown Ann Arbor as the first step in moving its AdWords operations here. It occupies two floors and 7,000 square feet of space in the building that formerly housed the Mayer-Schairer office supply store.

Twenty employees will begin work there over the next few weeks, most of them starting today.

On the building's second floor, furniture was arriving and computer systems were being set up this morning.

"We're getting settled in,'' said Grady Burnett, head of online sales and operations for Google's Ann Arbor office and a 1995 University of Michigan graduate.
It's not clear how long the search engine superpower will stay in the Main Street space. The company continues to explore options for a permanent office, where it could employ up to 1,000 people in the next five years.

Google's temporary and permanent locations have been under speculation since July, when the Mountain View, Calif.-based company announced plans to open an Ann Arbor office for its AdWords division. AdWords are short, four-line advertisements that appear on the right side of an Internet page when someone conducts a search using Google.
With only two floors available in the Main Street building, there's no room for expansion at the location.

"This just gets us off the ground,'' Burnett said. "We're going to expand as fast as we can and continue to hire great people as long as it makes sense for our business. So that's a good place for us to get started. It's a good central location, which is one of the things we like.''

He said the company is working on solidifying the parking situation for employees. He also said he expects employees will use public transportation to and from downtown.
Ann Arbor Mayor John Hieftje hopes that Google being downtown will influence its decision for a permanent office.

"We've always held out great hopes that Google would settle downtown, and I think it's great news that they are taking space downtown, even if it is temporary,'' Hieftje said. "It's a good sign.''

Burnett, who looked at more than 30 spaces for Google, said the hiring process is going well and the company is continuing to recruit prospective employees. He declined to say how many applications were received for Ann Arbor jobs but said interest in the positions has been significant.

"We've hired several great people already and we're continuing to interview high-quality candidates,'' he said. "... I think one of the primary reasons we came to this place is we thought there was a qualified, highly educated work force in the Ann Arbor community and in Michigan that would be great employees to work for Google and help us in our growth. So I think as we talk to various people in the interview process, we've seen a lot of great people with interesting backgrounds and diverse backgrounds that will add a tremendous amount to our business.''

AdWords and Google's other advertising vehicles are how the company, which boasts the Internet's dominant search engine, makes money. Its second-quarter revenues were $2.46 billion while net income was $721 million; both increased from a year ago.

The average salary will be $47,500. The 20 people already hired will focus on recruitment and account management, Burnett said. He said the newest employees are from Michigan and out of state. Some are new graduates from Michigan State University and U-M; others have more work experience.

The building at 112 S. Main St. is owned by Retro Development LLC and is being developed by 2mission Design and Development, both Ann Arbor-based businesses.
Vinology Wine Bar and Restaurant is located on the first floor and lower level of the building.

Greg Lobdell, one of the building's five owners and one of its developers, said he was excited Google will occupy the recently remodeled historic space, which he described as open with brick interior walls, high ceilings and lots of light.

"It's such a beautiful building. ... We're very excited that they chose to move in,'' Lobdell said. "I know the things I love about it are the downtown location and the proximity to all the restaurants and cool places to live and work. ... It's a really cool and positive place to work.''

Mike Finney, president and chief executive officer of Ann Arbor Spark, the area's economic development organization, said it's great news that Google made its initial selection of office space, which he described as well-suited to the company's needs.

"They are really doing a wonderful job of living up to the commitments they've made to the community,'' he said. "... We think this is a wonderful next step.''

Google officials say they don't have a timeline for choosing a permanent location.
"We've been actively looking, and we certainly have an interest in doing it as soon as possible, but we also want to make sure the space is right,'' Burnett said. He added that the company is looking both in the city of Ann Arbor and outlying areas.

"We've seen a lot of locations and we just haven't found the perfect spot for us yet ... so we're seeing a lot of great things and I think we'll find something here shortly,'' he said.

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