Google Paying $500M to Adjust Global Real Estate Leases
Bay Area-based tech giant Google has reported that the company plans to spend approximately $500 million in costs related to exiting leases around the world. According to SFGate, Google’s CFO Ruth Porat said the decision will align the company’s office space with its adjusted global headcount look.
With Google’s large presence in the Bay Area, it’s not surprising that many of those leases will be in the region. The company plans to end leases at a number of unoccupied spaces and will work to consolidate under-utilized spaces in the future. The closures however, will not derail Google’s planned Transit Village in Downtown San Jose.
In the current economic climate and with post-COVID hybrid work adjustments, many tech companies are spending money to downsize real estate holdings. In 2022, Meta estimated it would spend up to $2 billion to shed office space and in 2020, Pinterest paid nearly $90 million to terminate a lease in San Francisco.