Google has long had the intention of expanding its headquarters to an area of 80 acres, engulfing much of San Jose, California’s downtown. If you questioned if the «10-to-30-year» timeframe for the construction project could be committed to by the modern, shutdown-happy Google, congrats! After only two years of development, Google has reportedly «paused» the project, according to CNBC’s Jennifer Elias.
Google was given the go-ahead to begin the project in 2021. The goal was to construct a space that was double the size of Google’s recently completed «Bay View» headquarters, which is located roughly 14 miles away. 7.3 million square feet of office space, 4,000 homes, 15 acres of «parks, plazas, and green space,» and 500,000 square feet devoted to «retail, cultural, arts, education, hotels, and more» would have been included in the 80-acre «mixed-use neighborhood.» When the «Downtown West» project was first announced, there was no anticipated construction budget; nevertheless, some estimates indicated that the finished building may be worth $19 billion.
It was two years ago, though, and it appears that Google has again changed its goals now that it is in the cost-cutting and gaining the favor of Wall Street period. According to individuals who spoke with Elias, Google «doesn’t have plans to resurrect the project in the near future,» despite CNBC’s claim that it is currently «on hold.» The story also claims that Google pulled construction updates from the project’s website last month, citing «internal correspondence.»
For downtown San Jose, losing out on a significant development project is unfortunate, but Google made this choice two years after what CNBC refers to as «the first demolition phase.» So after arriving in town with a large sum of money and lots of promises, Google bulldozed everything and then left? According to CNBC, «The project’s demolition phase prompted the relocation of others while removing a number of iconic San Jose landmarks.» The area is currently «primarily a demolition zone at risk of becoming a long-term eyesore and economic zero» because the project has been put on hold. According to a foreboding San Jose Spotlight article from February, Google is «not legally compelled to actually establish its campus» even after the building has been torn down.
Building office space at this time would not be a wise decision. The pandemic’s aftermath increased the work-from-home trend, and Google’s decision to minimize costs and implement a «shared desk» policy makes it seem as though office positions will never again exist. However, COVID began in 2019, and by the time construction began in mid-2021, Google’s offices had been vacant for more than a year. A Google spokeswoman told CNBC that the company is «assessing how to best move forward with Downtown West» after the recession forced it into cost-cutting overdrive.
The director of Google’s San Jose development plan, Alexa Arena, assured the city that the project was «about the long haul» and that «we are not a developer that is coming in for five years» when the proposal was authorized by the city.
That quotation’s second part surely looks accurate.
Listing image by Aurich Lawson