Google Puts 1.4 Million Square Feet of Silicon Valley Office Space Up for Sublease
The tech giant paid nearly $565 million in the first three months of the year restructuring its office portfolio, about 13 percent more than projected.
By Greg Cornfield June 2, 2023 3:35 pm
reprints
One of the kings of Silicon Valley is cutting down on the amount of office space it uses and putting a chunk up for sublease as part of a larger effort to cut costs.
Alphabet-owned Google (GOOGL) is subleasing at least seven office buildings near its headquarters in Mountain View, Calif., according to multiple media reports, which cited brokerage marketing materials.
The combined properties total about 1.4 million square feet of office, research and development space, and land in Mountain View, Sunnyvale and Moffett Park, and are available through as late as August 2031. Google’s total footprint in the San Francisco Bay Area spans about 31.1 million square feet.
“As we work to ensure that our real estate investments match the needs of our hybrid workforce, we’re ending leases for a number of unoccupied spaces,” a Google spokesperson said in a statement.
The move follows the company’s announcement earlier this year that it expects to spend $500 million in the first quarter in “exit costs” to close offices and cut leases. However, Google paid more — nearly $565 million — in the first three months of the year restructuring its office portfolio. The company also cut about 12,000 employees.
Google’s strategies are similar to other tech and media giants like Facebook and Amazon, which appear to be rapidly cutting back on their real estate portfolios after years of record-setting growth, expansion and spending. Indeed, Google signed the leases for the space now up for grabs between 2016 and 2020, per the San Francisco Business Times.
In Los Angeles, Hudson Pacific Properties and Macerich recently completed the 584,000-square-foot One Westside office that is leased to Google on a long-term deal that started in 2022. The Google media relations team did not return requests for comment regarding One Westside.
Gregory Cornfield can be reached at gcornfield@commercialobserver.com.
