Benzinga | Jun 21, 2021 12:27PM EDT

Google To Close London Startup Hub Following Higher Remote Working: Bloomberg

* Google parent Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) plans to shut down its seven-story hub catering to London's Shoreditch district startups and replace it with virtual services following the remote working shift, Bloomberg reports.

* The move follows Google's offering of online support programs and services due to the pandemic.

* Google introduced the Campus facility near the Old Street gyratory in 2012. The area was the epicenter of the country's fast-growing digital economy as firms got attracted to the low rents and easy access to the financiers in London. All of which drove the property rents than London's traditionally dominant areas.

* However, the rents in the area may drop 12.5% in the year through March 2022 due to the remote work shift.

* Google expects 60% of its staff to work in the office a few days a week, with about 20% to work permanently from home.

* Finance organizations including Morgan Stanley (NYSE: MS), Goldman Sachs Group Inc (NYSE: GS), and JPMorgan Chase & Co (NYSE: JPM) sought a return to the office, unlike the big tech companies who continue to endorse remote work.

* Price action: GOOG shares traded higher by 0.67% at $2,528.43 on the last check Monday.