A prize tenant is leaving a prized property at the luxe waterfront offices of One Market Plaza, as Google is reportedly vacating its 300,000 square feet of the property when the lease expires next year.

Even the most megabucks tech companies like Google and Facebook have been laying people off and trying to offload their office space. That trend is continuing, as the Chronicle broke the news Tuesday that Google will not renew its lease at its satellite offices at One Market Plaza. Though this is not an attempt to sublease the property as we’re seeing with most SF office downsizings — Google will keep its workers at One Market Plaza until the lease expires in April 2025.  

As the Chronicle points out, this comes on the heels of Visa leaving that building as they announced a year ago. Google is allowing its lease to expire on 300,000 square feet of One Market Plaza. Overall, One Market Plaza is three buildings with an overall 1.6 million square feet, and Google will reportedly keep offices in one of those buildings even after the lease expires.  

“We’re focused on investing in real estate efficiently to meet the current and future needs of our hybrid workforce,” Google spokesperson Ryan Lamont told the Chronicle. “We remain committed to our long-term presence in San Francisco.”

Google also has offices at 345 Spear Street, so it’s fair to speculate they will just move those workers there.

And while the loss of a tenant like Google has to sting for the building’s owners Paramount Group and Blackstone, they are at least fortunate that Google waited until this month to acknowledge the move. Paramount and Blackstone got an extension on their $975 million loan for the building just this past January, according to the SF Business Times, and that all may have been a trickier proposition if Google had already announced they were leaving.  

In a statement to the Chronicle, Paramount and Blacksone kept their chins up.

“This trophy asset continues to generate leasing demand at record rent levels,” a spokesperson for the two companies told the Chron. “This space is leased through April 2025, and we are already in active dialogue with potential new tenants. We recently extended the loan through 2028 on attractive terms.”

The Chronicle notes that One Market Plaza is 92.5% occupied, which is sensational for this office market. But it's going to be a heck of a lot less occupied once Google and Visa are gone.

Related: Former Instagram Offices In Downtown SF May Be About to Become TikTok Offices [SFNews]

Image: Paramount Group