Google Is Quietly Unloading More Office Space, And The Reasons Are Piling Up

Summary: Google is offloading over 400,000 square feet of office space in Redwood City, following similar moves in San Francisco and the Bay Area. The downsizing reflects its shift to hybrid work, recent layoffs, and growing economic pressures like a potential recession and rising tariff-related costs.

Lately, Google has been slimming down its real estate portfolio. After putting over 1.4 million square feet of its office space through Mountain View and Sunnyvale on the sublease market in May 2023. In May 2024, Google vacated its 300,000-square-foot office space in San Francisco. Now, reports are indicating that it is offloading its Redwood City office buildings.

Google has listed four different buildings in Redwood City, including a “life science” building at the Pacific Shores Center, near the port of Redwood City. This totals over 400,000 square feet, where Google once had over a million square feet at this location.

Office occupancy rates are finally starting to rise in San Francisco, finally, after the pandemic. Going from 63.5% to 64.2%. Google itself has adopted a hybrid work environment now. Where workers can work from home, work in the office, or both. That is likely the main reason for Google shedding all of this real estate. With fewer and fewer workers coming into the office, Google doesn’t need as much space.

Google also recently laid off hundreds of employees in its Android and Pixel units

Another reason for Google likely shedding its office real estate is, it has fewer workers now. This morning, Reuters reported that Google laid off “hundreds of employees in its platforms and devices unit”. They are not giving out a specific number, but “hundreds” is not a small number for that unit. This is the unit that houses the Android platform, Pixel phones, and Chrome browser.

Of course, the current economic climate might also be a reason for Google to shed some of this space. Economists are expecting a recession this year, and we’ve already seen signs of companies pulling back on spending. As well as companies being forced to pay more to manufacture their products, thanks to President Trump’s tariffs. And the trade war with China doesn’t seem to be coming to an end anytime soon.