Google and Lendlease Abandon $15 Billion Bay Area Development Project
Alphabet's Google has abandoned its plans for a $15 billion development project encompassing homes, offices, and retail spaces in California's Silicon Valley.
The decision to terminate the San Francisco Bay Project, which involved four master-planned districts in San Jose, Sunnyvale, and Mountain View, was reached through mutual agreement between Google and the Australian developer, Lendlease, as announced by Lendlease on Friday.
Lendlease stated, "The decision to end these agreements followed a comprehensive review by Google of its real estate investments, and a determination by both organizations that the existing agreements are no longer mutually beneficial given current market conditions."
A Google spokesperson informed CNN on Saturday that the company remains committed to its housing initiative, but Lendlease will no longer serve as its exclusive developer.
The technology giant intends to expand its collaborations by working with a range of developers and capital partners to progress the Bay Area developments. The spokesperson emphasized that Google will continue to pursue mixed-use entitlements and invest in infrastructure.
Alexa Arena, Google's senior director of development, commented on the situation, saying, "As we've shared before, we've been optimizing our real estate investments in the Bay Area, and part of that work is looking at a variety of options to move our development projects forward and deliver on our housing commitment. We appreciate Lendlease and the work the team has done to get us to this point."
Construction on the project, originally slated to commence during Lendlease's 2026 fiscal year, has been shelved.