Google Signs 156,500-Square-Foot Lease Renewal with The Sobrato Organization in Mountain View

Google is set to sign a lease renewal for the entire 156,500-square-foot office building at 1255 Pear Avenue in Mountain View, California, according to sources familiar with the discussions. The deal, being worked out with building owner The Sobrato Organization, would keep Google in the Class A property located near the company's headquarters as other tenants across the region have been reducing their office footprints.

Deal Details: Full-Building Renewal Near Google's Headquarters

The transaction covers the entirety of the five-story office building at 1255 Pear Avenue, which totals approximately 156,501 square feet. The property is LEED Gold Core & Shell–certified, reflecting an emphasis on energy efficiency and sustainable design. Google has been an occupant of the building, making this a renewal and recommitment to the asset rather than a new tenancy.

The building sits within Sobrato's broader Pear Village mixed-use development, a roughly 10.25-acre site that also encompasses a second planned five-story office building of similar scale, 635 residential homes across north and south parcels, and structured parking. The mixed-use character of the project — combining office and residential density — aligns with the preferences of technology tenants seeking amenity-rich environments.

The Sobrato Organization's Mountain View Portfolio

The Sobrato Organization holds a significant Class A office presence across core Silicon Valley submarkets, with Mountain View assets including 1255 Pear Avenue, 590 Castro, 600 Ellis, and 636 Ellis Street, among others. The privately held firm has also been active in new development, with a 259,034-square-foot building at 465 Fairchild Drive in Mountain View slated to deliver in June 2027.

Retaining Google as a full-building tenant at 1255 Pear Avenue is strategically significant for Sobrato at a time when Mountain View's total office vacancy stands at 18.5% and availability reaches 23.7%. Locking in a large, creditworthy tenant supports asset stabilization and reinforces the leasing thesis for the broader Pear Village campus and adjacent properties.

Silicon Valley Office Market Context

The Google renewal arrives against a backdrop of gradual recovery in the Silicon Valley office market. Total office vacancy across Silicon Valley stood at 16.0% in the second quarter of 2026, down 60 basis points from the prior quarter and 170 basis points year-over-year. Average asking rents reached $4.99 per square foot per month on a full-service gross basis in Q2 2026, representing a 6.6% increase compared to the same period in 2025.

Mountain View, while carrying elevated availability, remains one of the region's higher-rent submarkets, and Class A properties in close proximity to major technology campuses have continued to attract tenant interest. Google's decision to renew rather than consolidate or relocate reflects a pattern of selective recommitment by large technology occupiers to well-located, high-quality office space even as broader market conditions remain uneven.

Broader Significance

The 1255 Pear Avenue renewal is among the larger office leasing transactions to emerge in Silicon Valley in 2026. For The Sobrato Organization, the deal stabilizes one of its flagship Mountain View assets and supports the long-term viability of the Pear Village development, which encompasses more than 1.5 million square feet of planned office, residential, and parking uses. For Google, the renewal signals continued investment in its Mountain View office presence.

Sources: Kidder Mathews