Google Recommits to 2.1M SF of Sunnyvale Office Space at Moffett Place and Moffett Gateway

Google Recommits to 2.1M SF of Sunnyvale Office Space
CRE Market Beat Take
A major tech tenant recommitting to a large Sunnyvale campus supports occupancy and cash flow assumptions for institutional-quality Silicon Valley office assets.

Google is reaffirming its long-term office presence in Sunnyvale, recommitting to approximately 2.1 million square feet of space after a period of footprint reductions. The move runs counter to the broader post-pandemic trend in which many Silicon Valley technology firms shed or downsized office holdings.

According to reporting from the Silicon Valley Business Journal, Google, the core business unit of Alphabet Inc., has agreed to lease five of the six buildings at Moffett Place. Those five buildings total about 1.5 million square feet and form a major share of Silicon Valley’s second-largest office complex. The transaction underscores the scale of Google’s commitment in this portion of the market.

In addition to the Moffett Place lease agreements, Google has also leased two seven-story office buildings at nearby Moffett Gateway. Both Moffett Place and Moffett Gateway were developed by Silicon Valley real estate firm Jay Paul Co., which has played a significant role in building large-scale office campuses in the area. Google has been the anchor tenant at Moffett Place for the past decade, and the latest leases extend that relationship across multiple assets.

These renewed and expanded leases come after two years in which Google had been scaling back its office footprint, aligning with cost-cutting and hybrid work shifts seen across the technology sector. The decision to recommit to a sizable block of space suggests a continued need for collaborative, centralized workplaces for portions of its workforce, even as remote and flexible work arrangements remain part of the broader corporate strategy.

In a statement to the Business Journal, a Google spokesperson emphasized the company’s long-standing alignment with the region, noting that the company has called the Bay Area home for more than 20 years and remains focused on providing workspaces that support employee productivity. The comments reinforce Google’s positioning as a long-term occupier in key Silicon Valley nodes.

The Google renewal and new leasing activity arrive at a time when other large corporations are also absorbing space and reducing availability across Silicon Valley, according to the Business Journal. For landlords and investors, sustained leasing by major technology users at large, institutionally developed campuses such as Moffett Place and Moffett Gateway offers a data point on how demand for well-located, modern office product is evolving in the region.

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