Google has renewed its lease for offices in San Francisco, but for less than half the space it previously occupied in South of Market.

The Mountain View-based technology company has renewed its lease for 64,000 square feet at 215 Fremont Street, the San Francisco Chronicle reported, citing unnamed sources. Terms of the deal with landlord Clarion Partners were not disclosed.

That’s 45 percent of the 13,000 square meters of office space that the search engine giant rented there in 2019.

The downsized lease comes a few months after Google announced it would vacate its 28,000-square-foot office at One Market Plaza at 1 Market Street on the Embarcadero.

The technology giant has been cutting jobs and costs. According to the Chronicle, there have been several waves of layoffs this year, including at 215 Fremont Street and surrounding offices.

Despite the cuts, Google still leases offices in San Francisco at the Ferry Building, One Market Landmark Building, One Maritime Plaza and Hills Plaza.

In May, an unnamed Google spokesperson said, “We are focused on investing efficiently in real estate to meet the current and future needs of our hybrid workforce. We remain committed to our long-term presence in San Francisco.”

Charles Schwab, which moved its eight-story headquarters from San Francisco to Texas in 2021, was previously the longtime tenant at 215 Fremont Street.

The company later subleased much of the 35,000-square-foot building to wearables company Fitbit, which increased the building's value when it was sold in 2019 to New York-based Clarion Partners for $335.5 million, or $898 per square foot.

Google bought Fitbit in 2021 after Google had already leased offices at 215 Fremont Street. It is not known whether Fitbit still has offices in the building.

Since then, office prices have fallen dramatically across San Francisco. An office building at 550 California Street is trading at $114 per square foot.

According to adjusted figures from CBRE, office vacancy in the city reached a record high of 36.8 percent in the second quarter.

— Dana Bartholomew

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