Overview

• Google and real estate developer Lendlease have mutually ended their agreement to construct a 15,000 housing unit project in the San Francisco Bay Area, citing unfavorable market conditions.
• The $15 billion project, planned to commence in 2026, was a large residential campus including office space, retail, and hospitality areas across sites in Sunnyvale, San Jose, and Mountain View.
• Although the project is being halted, Google confirmed its commitment to meet its housing development goal in the Bay Area and is exploring options to move development projects forward with other developers and capital partners.
• The termination of the project followed an extensive review of Google's real estate investments. The company has been optimizing its assets in the Bay Area due to high mortgage rates and the increased popularity of hybrid working models, which have reduced the need for office space.
• As part of the cancellation, Google will make a payment to Lendlease in compensation for the value created in the entitlement and master planning process. The exact amount was not disclosed.