Tech giant Google is reportedly preparing to exit its 300,000 square foot office at San Francisco’s One Market Plaza when its lease expires in April 2025.
of san francisco chronicle report One Market Plaza, a prominent downtown office complex with spectacular views of the San Francisco Bay, is preparing for the departure of its second major tenant in just a year. Google has occupied the vast office space since 2018, but plans to move out when its lease expires next April, a company spokesperson confirmed on Tuesday. The move follows the recent withdrawal of Visa, which relocated its employees to Mission Rock.
The decision to vacate the waterfront office comes as Google is taking a flexible approach to coming into the office, with many employees already working remotely. One of the city’s largest office complexes and a defining feature of the city’s skyline, the Market Plaza spans 1.6 million square feet with two high-rise towers and an 11-story annex known as Landmark. It is proud of its spaciousness.
Participants take part in a pro-Palestinian demonstration at the opening of Israeli artist Michel Kishka’s “Frontline Cartoons” exhibition at the MOCAK Museum of Modern Art. April 11, 2024 in Krakow, Poland. (Photo by Beata Zawrzel/NurPhoto via Getty Images)
Google employees march to City Hall during the Global Climate Strike on Friday, September 20, 2019 in Seattle, Washington, USA. Thousands of employees at Microsoft and Amazon.com have left their companies without their bosses’ blessings. To protest against rising global temperatures.Photographer: Chloe Collier/Bloomberg
Google spokesman Ryan Lamont said the company will move out of Spear Tower but will continue to occupy the smaller landmark building. Lamont declined to comment on the length of Google’s planned stay in the landmark building, but reaffirmed the company’s commitment to maintaining a long-term presence in San Francisco.
Real estate market insiders have indicated that Google plans to consolidate its operations from One Market to nearby 345 Spear Street, where the company currently leases about 400,000 square feet. Those sources suggest Google is likely to renew its lease at 345 Spear St., which expires next year, but Lamont declined to comment on this potential move. .
News of Google’s impending exit comes as Paramount and Blackstone are negotiating a three-year extension with a one-year option on the $975 million loan for One Market Plaza, which expires in February. It was announced just a few months after its success. The partners managed to secure an extension by paying $125 million against maturing debt. Market participants have suggested that these deals would have been more difficult to secure if Google had announced its exit sooner.
Despite San Francisco’s office vacancy rate exceeding 36% this year, an all-time high, One Market Plaza still has the highest rents in the city, with effective rents trailing other trophies. Approximately 20% more expensive than office buildings. The complex has attracted top-tier tenants such as Visa and Autodesk over the years, but both companies recently announced plans to exit or scale back their operations at the facility.
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Lucas Nolan is a reporter for Breitbart News, covering free speech and online censorship issues.
