Google’s landlord next door to its own headquarters just swapped lenders on identical terms, locking in continuity on one of North Bayshore’s most closely watched office assets even as the surrounding submarket carries some of Silicon Valley’s highest vacancy.
Broadreach Capital Partners has secured a $150 million loan for 1625 Plymouth, a 245,738-square-foot, Class AA+ office property in Mountain View’s North Bayshore submarket, according to a report from Commercial Property Executive. Apollo Global Management originated the new mortgage, which retires a previous note of the same $150 million amount that the New York State Teachers’ Retirement System issued in 2018, when HFF arranged the original financing. The new loan matches the prior balance rather than pulling out additional proceeds, meaning the deal’s underwriting rests almost entirely on the strength of the building’s tenant and remaining lease term.
Broadreach delivered 1625 Plymouth on a built-to-suit basis for Google in 2018, working with the City of Mountain View through a complex entitlement process to secure the rezoning and density allocations needed to build what became a Class AA+ project adjacent to Googleplex, the company’s global headquarters, according to Broadreach’s own project description. Google occupies the entire six-story building on a 100 percent basis, with floorplates ranging from 32,722 to 42,112 square feet. The WRNS-designed property includes a cafeteria, outdoor patios and a four-story parking garage, and holds LEED Platinum certification.
That single-tenant, credit-grade lease stands out against Mountain View’s broader office fundamentals. The submarket carried a 14.9 percent direct vacancy rate and an 18.5 percent total vacancy rate in the second quarter of 2026 — well above Silicon Valley’s overall 16.0 percent vacancy rate — even as its average asking rent of $6.83 per square foot ranked as the second-highest in the region behind only Palo Alto’s $7.48, according to Kidder Mathews’ Q2 2026 Silicon Valley Office Market Report. Mountain View’s 14.8 million square feet of inventory included just one project under construction as of the second quarter: 465 Fairchild Drive, a 259,034-square-foot development from The Sobrato Organization targeting a June 2027 delivery, the same report found. A fully leased, Google-occupied asset commanding premium rent in a submarket where nearly a fifth of total inventory sits vacant is precisely the kind of profile that has kept lenders like Apollo willing to underwrite at full proceeds.
Silicon Valley’s office market overall has been gradually stabilizing, according to Kidder Mathews, with vacancy down 170 basis points year-over-year and 60 basis points quarter-over-quarter to 16.0 percent, and net absorption positive for a fourth consecutive quarter at 863,377 square feet, bringing year-to-date absorption to 1.2 million square feet — a sharp reversal from the negative 1.8 million square feet recorded in the first half of 2025. Leasing activity reached 4.9 million square feet through the first half of 2026, up 34.7 percent year-over-year, driven by large, high-conviction commitments such as Palo Alto Networks’ 909,616-square-foot renewal in Santa Clara and AMD’s 313,906-square-foot renewal, also in Santa Clara, per Kidder Mathews. The firm’s research describes a market recovering unevenly, with strength concentrated in technology and AI-driven demand while older, less competitive assets continue to face pressure from vacancy and conversion discussions.
Investment sales activity has followed a similar pattern of selective conviction. The largest Silicon Valley office sale of the second quarter was Ellis Partners and The Baupost Group’s $310 million acquisition of the 634,760-square-foot Great America Commons in Santa Clara from seller PGIM, at $488.37 per square foot, according to Kidder Mathews. The Real Deal reported the price represented a 42.4 percent premium to the property’s $217.7 million assessed value from January 2025, and marked the second-largest Bay Area office trade of the year behind only the $691.6 million sale of San Francisco’s Transamerica Pyramid — a sign, the outlet reported, that capital is willing to pay up for large, well-tenanted campuses even as the broader office market remains bifurcated. Apple’s $162.2 million purchase of 684 W. Maude Ave. in Sunnyvale, at $833.36 per square foot, was the quarter’s second-largest sale, Kidder Mathews reported, reflecting continued owner-user conviction in core Silicon Valley locations even as investor sales volume overall ran 27.4 percent below the prior year’s pace.
For Broadreach, refinancing 1625 Plymouth at the same $150 million balance it carried in 2018 — on a building now seven years into a Google lease with years still remaining — locks in continuity on one of its signature Silicon Valley assets. For Apollo, the deal adds another Bay Area office loan to a market where lenders are increasingly distinguishing between credit-tenant assets commanding premium rents in supply-constrained pockets and the older, more vacant stock still weighing down the region’s headline vacancy figures.
