Google has reviewed its real estate investments and come to the conclusion that its $15 billion real-estate investment in the San Francisco Bay Area that included apartments, shops and new office space was no longer in the cards.
The company had partnered with Australia's Lendlease to develop this vision four years ago but now has ended that relationship along with its plans, according to news reports.
"The existing agreements are no longer mutually beneficial given current market conditions," Lendlease told the Wall Street Journal.
Recommended For You
Google still appears willing to move the projects forward, according to a spokesperson.
"As we've shared before, we've been optimizing our real estate investments in the Bay Area, and part of that work is looking at a variety of options to move our development projects forward and deliver on our housing commitment," Alexa Arena, a senior director of development at Google, said in an emailed statement to Bloomberg.
The news is likely a blow to local housing advocates as the projects also included 4,000 new homes in the city's tight residential market.
But San Jose Mayor Matt Mahan told Bloomberg he remains confident that Google will move forward with its planned 80-acre mega development in his city. "This news doesn't change Google's commitment to San Jose or their timeline," he said.
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
