Google is packing up at One Market Plaza, one of San Francisco's most exclusive waterfront office buildings. The tech giant will vacate its 300,000-square-foot space in the landmark when its lease ends in April 2025, leaving a notable vacancy in the luxe complex.
Following in the footsteps of Visa, Google confirmed its intention not to renew its lease at the Spear Tower portion of One Market Plaza, bringing a shift to San Francisco's prime real estate landscape. Existing amidst the transformative waves the pandemic has left on the work environment, the company has been operating with a more flexible, hybrid approach to office attendance. SFist highlighted Google's spokesperson Ryan Lamont's comments, "We’re focused on investing in real estate efficiently to meet the current and future needs of our hybrid workforce," reinforcing their commitment to maintaining a significant presence in the city.
The move by Google to consolidate operations from One Market to another of its locations at 345 Spear Street has been speculated by market watchers. While the spokesperson declined to comment on potential renewal plans at the 345 Spear Street offices, the transfer suggests a strategic response to the shifting demands of tech employees. With Google still set to keep offices in the Landmark portion of One Market, the real impact on the complex's occupancy remains in the balance.
Paramount Group and Blackstone, the owners of One Market Plaza, expressed stoic optimism despite Google's scheduled departure. With a lease in place through April 2025, the companies cheerfully reported to the San Francisco Chronicle, "This trophy asset continues to generate leasing demand at record rent levels," they said. "We are already in active dialogue with potential new tenants." This expression of confidence comes even as San Francisco confronts record office vacancies citywide.
As previously reported by the Chronicle, Google's exit is the second major blow to One Market Plaza's impressive tenant list, which saw Visa and Autodesk scaling back their presence at the high-rent location. Despite these setbacks and office vacancy in the city surpassing 36%, paramount rents at One Market Plaza have steadfastly commanded about 20% higher prices than competing properties.
