Google has renewed its office lease at 215 Fremont St. in San Francisco, but will occupy less space as the company continues its downsizing in the city.
San Francisco Chronicle’s Post
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🔔 Google Renews Lease at 215 Fremont St; Rightsizing and Remaining Committed to SF 🏢 🌁 Google has renewed its lease at 215 Fremont St. in San Francisco, marking a continued presence in the city despite ongoing rightsizing efforts. The tech giant will now occupy 64,000 square feet to be coterminous with their other space in the building. 🏢 This move follows Google's earlier decision to vacate its 300,000-square-foot space at One Market Plaza, which I highlighted two months ago. This strategic shift is part of Google's broader strategy to realign its real estate to better fit the hybrid work model, emphasizing efficiency and flexibility. 📉 Despite exiting One Market Plaza, Google remains committed to maintaining a long-term presence in San Francisco. The company continues to lease numerous offices in the city, including the Ferry Building, the One Market Landmark Building, One Maritime Plaza, and Hills Plaza. 💼 San Francisco's office vacancy rate hit a record high of 36.8% in the second quarter, but significant leases like Scale AI at 650 Townsend St., the city of San Francisco at 1455 Market St., and Rippling at 400 California St. highlight market dynamism. 🔄 These developments reflect the resilience and adaptability of the Bay Area's real estate landscape. As a commercial real estate professional, I'm excited to see how these shifts will shape the future of office space in our vibrant city.
Exclusive: Google renews S.F. office lease, but the tech company continues downsizing
sfchronicle.com
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Google Renews Lease, Affirming Ongoing Investment in Silicon Valley's Office Landscape Alphabet-owned Google has demonstrated a shift in its real estate strategy by renewing the lease for a substantial office space near its global headquarters in Mountain View, California. The renewal encompasses nearly half a million square feet at the Alta Plaza campus, easing concerns within Silicon Valley's real estate sector regarding potential further reductions in Google's footprint. This move comes as Google enforces stricter in-office mandates, indicating a departure from the trend of substantial real estate downsizing the company has undertaken in recent times. The leased space is spread across three buildings at 1900, 1950, and 2000 Charleston Road, initially occupied by Google in 2008, with subsequent expansions over the years. While specific terms of the renewal agreement remain undisclosed, this commitment signifies a boost of confidence in Silicon Valley's office market, countering the prevailing trend of significant portfolio reductions among major tech occupants in response to economic concerns. Google's recent real estate actions have included offloading substantial office space and implementing workforce reductions, reflecting a shift in priorities towards profitability over rapid expansion. However, despite these adjustments, Google maintains a significant commercial footprint in the San Francisco Bay Area and remains steadfast in its commitment to prominent projects, including the $1 billion Silicon Valley initiative centered around Diridon Station in San Jose, California. #Google #SiliconValleyRealEstate #TechIndustry #OfficeSpace #RealEstateRenewal #MountainView #AlphabetInc #CommercialLease #BusinessNews #WorkspaceCommitment #AltaPlazaCampus #CorporateRealEstate #EconomicTrends #FutureOfWork #TechGiant
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Google’s Latest Sublease Move Shows Global Tech Giant Isn’t Done Shedding Real Estate Alphabet Subsidiary Lists Two Silicon Valley Offices in Extension of Widespread Cuts to Space, Workforce - Alphabet, Google's parent company, is continuing its trend of shedding real estate, with a recent move to sublease two Silicon Valley office buildings in San Jose. - The listed properties, totaling nearly 174,000 square feet, mark another step in Google's ongoing effort to reduce its real estate footprint. - Google originally leased these properties in late 2015, but now seeks to offload them as part of its broader real estate restructuring. - The tech giant's reduction in real estate holdings aligns with its focus on profitable growth and high-priority initiatives like artificial intelligence. - Last year, Google incurred over $1.8 billion in expenses related to restructuring, including significant layoffs and office closures. - The company also spent more than $2.1 billion in severance and other charges associated with reducing its workforce, resulting in a notable decline in its employee count. - Google's approach mirrors that of other Silicon Valley tech companies, which have similarly cut back on real estate holdings by closing offices and subleasing space. - With this latest sublease listing, Google adds to the approximately 2 million square feet of office space it offloaded in the previous year, contributing to the surplus of available office space in the Bay Area.
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🚀 San Francisco's Office Market Sees New Life! 🏢 OpenAI is close to signing the city's largest office lease since 2018 in Mission Bay, marking a significant rebound for San Francisco's office market. This expansion could triple OpenAI's workforce, injecting vitality into the area. Anthropic has also made a move, signing a lease for 250,000 square feet at the former Slack headquarters, pending final approval. While these AI firms' expansions are a boost for the tech sector, experts note that they alone won't resolve the city's high-vacancy issues. However, they could provide a positive momentum, potentially encouraging other sectors to reassess their space needs in San Francisco. Stay tuned for more updates on these developments! https://lnkd.in/gCVByauB #SanFrancisco #RealEstate #OfficeMarket #OpenAI #Anthropic #EconomicGrowth
Exclusive: OpenAI close to signing S.F.’s biggest office lease since 2018
sfchronicle.com
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📢Google and Lendlease Cancel $15 Billion Silicon Valley Real Estate Project 🏢 Google and Lendlease have scrapped their $15 billion real estate venture in Silicon Valley. The move prompts reflection on the impact on the real estate sector of increasing office vacancy rates and a substantial reassessment of workspace strategies after the pandemic. The ambitious project was originally designed to create 15,000 new homes and revitalise the regions of San Jose, Sunnyvale, and Mountain View. The vision entailed the construction of a vast complex encompassing over 15 million square feet of office, residential, retail, and other spaces. This cancellation follows Google's earlier move to sublease 1.3 million square feet of office space, reflecting the broader trend of streamlining real estate portfolios. #google #realestate #usa #siliconvalley
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Thirty years of comprehensive experience in the dynamic NYC real estate market. If you have something interesting you wish to propose, please do—I’d love to hear from you. I look forward to exploring new opportunities.
Major firms are following Google’s lead and taking advantage of New York City’s weaker investment sales market to pick up prime office, retail and industrial assets to enhance their own brands. New York City saw investment property sales fall 40 percent to $22.1 billion in 2023 the lowest in the past decade, excluding 2020 during the Covid-19 pandemic
Google celebrated the opening of its newest facility at St. John’s Terminal this week, and many New York City firms are following the tech giant’s lead by taking advantage of the weaker investment sales market to pick up prime office, retail, and industrial assets that enhance their own brands. Shimon Shkury, President and Founder of Ariel Property Advisors, explores this trend in his latest Forbes article. Learn more: https://lnkd.in/dp9VfDiF
New York City Firms Follow Google’s Lead And Acquire Properties To Call Home
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Microsoft has decided not to renew its primary office lease in downtown Bellevue at the Bravern Towers, marking another step in its shift away from the city, due to its extensive Redmond campus renovation. Since 2021, Microsoft's Bellevue workforce has decreased from 9,300 to potentially as low as 4,400 this year. However, other tech giants like Amazon and Meta Platforms are expanding in Bellevue. Amazon now employs over 10,000 people in Bellevue, an increase from 7,500 in 2021, and Meta's workforce stands at 3,500. Bellevue's chief economic development officer, Jesse Canedo, emphasized that the city is thriving, with key economic indicators like business openings and retail spending on the rise. Notably, daily visits to downtown Bellevue have surged by 18% compared to pre-pandemic figures. Microsoft continues to play an essential role in the community, with numerous employees residing in the region and contributions that will positively impact Bellevue in the future. #smartcap #redmond #kirkland #bellevue #amazon #bravern #meta #microsoft #tech #expansion #lease #downtownbellevue #economy #community
Microsoft says it won't renew Bravern towers lease in downtown Bellevue - Puget Sound Business Journal
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NEW YORK/LONDON CurzonAbsoluteRelo.com The shift to "flexible working" is really behind this. The same situation is being played out across the US, UK and internationally. https://lnkd.in/erKSUZfW WSJ Extract (April 16): - Big technology companies are cutting back on office space across major coastal cities, leaving some exposed landlords with empty buildings and steep losses. - The pullback marks a sharp reversal after years when companies such as Amazon.com, Meta Platforms’ Facebook and Google parent Alphabet had been bolstering their office footprints by adding millions of square feet of space. - Their expansion continued even after the pandemic erupted and many employees started working remotely. Tech companies have been the dominant tenant in West Coast cities like Seattle and San Francisco. - Now, big tech companies are letting leases expire or looking to unload some offices. Amazon is ditching or not renewing some office leases and last year paused construction on its second headquarters in northern Virginia. - Google has listed office space in Silicon Valley for sublease, according to data company CoStar. -Meta has also dumped some office space and is leasing less than it did early on in the pandemic. - Salesforce, the cloud-based software company, said in a recent securities filing that it leased or owned about 900,000 square feet of San Francisco office space as of January. That is barely half the 1.6 million of office space it reported having in that city a year earlier. #innovation #management #technology #realestate #future #startups #globalmobility #entrepreneurship #newyork #london
Big Tech Is Downsizing Workspace in Another Blow to Office Real Estate
wsj.com
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Education | Workforce Development | Training | People Operations | Talent | Engagement | Event Management
Google is set to leave its 300,000-square-foot space at One Market Plaza in San Francisco, following Visa's departure. Many Google employees already work remotely, so the impact might be lessened. Google will likely consolidate its operations at nearby 345 Spear St. despite declining to comment on lease renewal. Although One Market Plaza commands high rents and boasts mostly good credit tenants, Autodesk and Visa have already announced plans to vacate or downsize their spaces. Despite recent leasing activity, the complex's vacancy rate is expected to rise after Google's departure, signaling challenges even for prime office properties in the current market.
Google will exit prominent San Francisco waterfront office tower — San Francisco Chronicle
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Founder & CEO of KYield. Pioneer in Artificial Intelligence, Data Physics and Knowledge Engineering.
Remember back in 2018 when cities were exploited to bid for Amazon's HQ2? Be careful what you wish for. NYC and Arlington, VA bid $2 billion in subsidies to lure HQ2, just in time for the pandemic and WFH. Big tech continues to cut back on office space in major cities. For example, despite the recent PR campaign to convince that San Francisco was in recovery mode, largely due to massive funding for a few LLM firms hiring few people, the city's commercial vacancy rate hit a new record in Q1 at 36.7%. It was 3.6% in early 2019. That's an enormous amount of asset value wiped out. I wonder how much of it has actually been reflected in net worth statements across the country (other markets are also feeling the pain, though not as much as SF). An excellent example of why regional economies should seek healthy diversification rather than concentration in any one sector, or even worse, domination by one or two companies. Here in SF/ABQ NM the federal labs are the greatest economic engines, along with the state of NM. In terms of revenue the state has become much too dependent on O&G from SE NM. I read a report recently that claimed about half the state budget is now from O&G revenue, up from a third just a few years ago. Scary level of dependence in just O&G and government.
Big Tech Is Downsizing Workspace in Another Blow to Office Real Estate
wsj.com
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