Google has renewed leases covering roughly 2.1 million square feet of office space in Sunnyvale, California, recommitting to two office parks the technology giant has anchored for the past decade. The deal, reported by The Real Deal and independently confirmed by Connect CRE, reverses years of space-cutting by Google and parent company Alphabet and signals renewed confidence in a Silicon Valley office market where AI-driven leasing demand is tightening availability in top-tier submarkets.
The renewed leases cover five of the six buildings at Moffett Place, a roughly 1.5-million-square-foot complex at 151-1195 Borregas Avenue that ranks as Silicon Valley’s second-largest office property, along with two seven-story buildings at Moffett Gateway, at 1225 Crossman Avenue, both outlets reported. Jay Paul Co., the developer and landlord of both projects, was represented by Newmark in the transaction. Terms of the lease, including length and rate, were not disclosed.
“We’ve been proud to call the Bay Area home for more than 20 years, and we remain committed to creating workspaces that help Googlers do their best work,” a Google spokesperson said, according to Connect CRE.
The renewal comes as Silicon Valley’s office market works through a prolonged, uneven recovery. First-quarter 2026 market reports from brokerages including CBRE, Colliers and Kidder Mathews put regional vacancy in the high-teens to low-20-percent range, well above pre-pandemic norms, even as several consecutive quarters of positive net absorption point toward stabilization. Sunnyvale has emerged as one of the stronger submarkets within that broader picture, with brokers citing AI-related leasing activity from large technology tenants as a key driver of demand.
Google’s move also marks a notable reversal from its own recent trajectory in the region. The company spent much of the past two years paring back its Sunnyvale footprint amid post-pandemic hybrid-work adjustments, including putting space up for sublease elsewhere in the market, according to prior CoStar reporting. Separately, The Real Deal reported in June that a different cluster of former Google offices in Sunnyvale was headed toward a housing conversion. The Moffett Place and Moffett Gateway renewal, by contrast, keeps Google anchored in one of its longest-held Silicon Valley locations.
What it means
The core facts of the transaction β the buildings involved, the square footage and the identities of landlord and broker β are consistent between The Real Deal’s initial report and Connect CRE’s independently reported account, satisfying RealtyWire’s bar for reported news requiring corroboration. Neither outlet cited a landlord press release or regulatory filing; Jay Paul Co. is privately held, so there is no SEC disclosure to check the reporting against, and deal terms such as lease length and rate remain unconfirmed by any source. RealtyWire’s assessment that the renewal signals improving confidence in Sunnyvale’s office market draws on brokerage vacancy and absorption data cited above, not on the lease reporting itself.
What to watch
Watch for Jay Paul Co. or Newmark to confirm additional deal terms, and for second-quarter 2026 brokerage reports to show whether the renewal moves the needle on Sunnyvale’s vacancy and absorption figures. Also watch whether other large Silicon Valley tenants follow Google’s lead in recommitting to space rather than shedding it, a trend that would further support the market’s recovery narrative heading into the back half of 2026.
