Google Recommits to Sunnyvale Offices With Massive Lease

Google doubled down on its commitment to Sunnyvale with a massive office lease renewal.

The Mountain View-based tech giant reupped for 2.1 million square feet in an office complex it has anchored for a decade, the Silicon Valley Business Journal reported.

The deals include five of the six buildings at Moffett Place, at 151 to 1195 Borregas Avenue, the second-largest office complex in Silicon Valley, spanning 1.5 million square feet, as well as two seven-story buildings at Moffett Gateway, at 1225 Crossman Avenue. Jay Paul Company developed Moffett Place and Moffett Gateway in 2016.

Terms of the lease were not disclosed. Newmark represented Jay Paul Company in the deal.

Google’s lease renewal marks a notable reversal from the space-cutting strategy it embraced two years ago while adjusting to hybrid work. The renewal comes months after Google announced it was exiting offices in the Jay Paul Company-owned Moffett Park, at 237 Moffett Park Drive, with plans to move its Google Cloud operations to a campus its parent company owns at 100 and 200 West Caribbean Drive.

Large leases in Sunnyvale are chipping away at Silicon Valley’s substantial office glut. Amazon just committed to 320,000 square feet at a former Google-occupied building in Sunnyvale, while OpenAI and General Motors are converting vacant former tech campuses in Mountain View and Palo Alto.

Overall office availability in Silicon Valley is 18.2 percent, and Class A availability in Sunnyvale is 10.9 percent, according to JLL.

Investors have increasingly bought into Sunnyvale amid Silicon Valley’s broader office comeback.

Apple spent more than $1 billion buying offices in Sunnyvale and its neighboring hometown of Cupertino last year. It added to that streak last month with a $162 million office purchase at 684 West Maude Avenue. Also last month, Fortinet bought two commercial buildings at 140 and 144 Commercial Street for $15 million, adding to its $47 million purchase of seven properties in Sunnyvale earlier this year.

— Chris Malone Méndez