By Meghan Hall
Google closed out another record year with a bang, leasing nearly 500,000 square feet in Sunnyvale in November of 2019. The square footage is spread across two buildings that are part of Jay Paul Co.’s Moffett Towers, a Class A office complex comprised of eight buildings that originally opened in 2008. The lease shows that Google, who is often keen on acquiring its own assets, often in major transactions, is still willing to rent large blocks of space in Silicon Valley’s tight real estate market.
The transaction was first reported by the Silicon Valley Business Journal, who confirmed with Google spokesperson Michael Appel and other industry sources that the firm has indeed taken the space.
Altogether, Moffett Towers totals 1.8 million square feet. Its features include a 40,000 square foot fitness center for tenants, a junior Olympic pool and outdoor spa and personal training. Google has taken all of 1020 Enterprise Way and about half of 1050 Enterprise Way. Both buildings total around 317,000 square feet, with Google officially inking 498,362 square feet of that space.
The transaction is the fourth largest lease agreement in Silicon Valley in 2019. Other large leases of the year include Google’s decision to lease nearly 730,000 square feet in North San Jose from developers Richard Peery and John Arrillaga. Verizon Communications also took 643,000 square feet at Coleman Highline; Verizon also leased nearly 600,000 more square feet as part of a sale-leaseback after Google purchased its headquarters.
As an owner and tenant, Google is familiar with and frequently pursues large transactions in an effort to accommodate its growing workforce. And, like many other tech giants, Google is no stranger to prolific Silicon Valley developer Jay Paul Co. and Moffett Towers. In 2016, Google leased all of Jay Paul’s Moffett Gateway—totaling 612,000 square feet—also located in Sunnyvale.
In June 2018, Amazon leased an additional 385,000 square feet at 1140 and 1160 Enterprise Way, part of Moffett Towers. The lease was an expansion; Amazon and Jay Paul had already worked to come to an agreement on 1100 and 1120 Enterprise Way, where Amazon took 357,000 and 225,000 square feet, respectively. Both buildings are part of Moffett Towers I. In March of 2018, The Registry reported that Facebook took nearly one million square feet across three buildings in Moffett Towers II.