Moving

Google to Vacate 300K sf Workplace on San Francisco Waterfront

Google will vacate a 28,000-square-foot waterfront office in San Francisco's financial district.

The Mountain View-based tech giant will come hot on Visa's heels and vacate the three-building One Market Plaza at 1 Market Street on the Embarcadero, the San Francisco Chronicle reported. The company expects to leave the building when its lease ends in April.

The 150,000-square-foot One Market Plaza features two high-rise towers with a six-story addition and an 11-story historic building called The Landmark.

Ryan Lamont, a Google spokesman, said the company will move out of One Market's 42-story Spear Tower but will continue to use the landmark building. He declined to comment on how long Google plans to stay there. Many employees are already working from home.

“As we have said before, we are focused on investing efficiently in real estate to meet the current and future needs of our hybrid workforce,” Lamont said in an email to the Chronicle. “We remain committed to our long-term presence in San Francisco.”

Google plans to consolidate much of its operations from One Market into a nearby 37,000-square-foot office building at 345 Spear Street, unnamed sources told the newspaper. The company is expected to renew its lease on that property when it expires next year.

Lamont declined to comment on a possible lease extension for 345 Spear Street.

News of Google's impending exit from One Market Plaza comes five months after New York-based Paramount Group and Blackstone provided a $975 million loan tied to the complex that was due to mature in February.

According to the Chronicle, the partners have reached an agreement to extend the loan for three years, with an option for another year, in exchange for paying off $125 million in debt. Financial details of the deal were not disclosed.

Working out such a deal would probably have been more difficult if Google had announced its withdrawal at the time, an unnamed “market participant” told the newspaper.

“This flagship property continues to generate record levels of rental demand,” an unnamed Paramount and Blackstone spokesperson told the Chronicle. “This space is leased through April 2025 and we are already in active discussions with potential new tenants. We recently extended the loan through 2028 on attractive terms.”

One Market Plaza, where rents are about 20 percent higher than other prime offices, is 92.5 percent occupied and rents are over $100 per square foot.

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Recent lease signings include Capital Research, which renewed 79,000 square feet, Citigroup, which leased 76,000 square feet, Thoma Bravo, which leased 43,000 square feet, and GIC, which signed a lease for 22,000 square feet.

Last year, Autodesk offered 73,000 square feet of the 284,000 square feet it occupies for sublease. Visa, whose lease expires in 2026, also offered its entire 162,000-square-foot headquarters ahead of moving to its new center in Mission Rock.

One Market Plaza was previously owned by Morgan Stanley and the Paramount Group. In 2014, Blackstone bought a 49 percent stake in the complex for $600 million.

— Dana Bartholomew

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