Google’s landlord lists tech firm’s Venice campus for sale

Google’s landlord lists tech firm’s Venice campus for sale

  • 24.03.2025 15:00
  • therealdeal.com
  • Keywords: Google, CBRE

W.P. Carey has listed Google's Venice campus, the Binoculars Building, for sale through CBRE. The 78,578-square-foot landmark is expected to attract strong interest due to its high-profile location and architectural significance.

Alphabet Reports
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Estimated market influence

W.P. Carey

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Analyst rating: N/A

W.P. Carey is selling the Binoculars Building which is leased by Google.

Google

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Analyst rating: N/A

Google currently leases the building from W.P. Carey and has other campuses in Silicon Beach, but their long-term plans are unclear.

Context

Analysis of Google’s Venice Campus Sale Listing

Key Facts and Data Points

  • Property Details:

    • Building: Binoculars Building (78,578 sq ft)
    • Location: 340 West Main Street, Venice Beach Boardwalk
    • Tenants: Currently leased to Google

  • Ownership History:

    • Acquired by W.P. Carey in 2018
    • Spun off into a separate REIT in 2023

  • Listing Process:

    • Brokerage: CBRE
    • Marketing Team: Todd Tydlaska, Sean Sullivan, Melissa Moock, Mike Longo, Grant Goldman
    • Anticipated Bidding: Competitive due to "strong initial interest"

Market Insights and Trends

  • Demand for High-Profile Assets:

    • The Binoculars Building is a unique, high-profile asset in a desirable location.
    • CBRE’s Todd Tydlaska highlights investor preference for great locations and iconic assets at attractive price points.

  • Office Market Dynamics:

    • Office vacancy rates in West Los Angeles: ~22% (down from previous years).
    • Average asking rent trends:
      • Venice: Unclear, but nearby areas like Century City/Marina Del Ray saw rents rise to $5.57/sq ft last quarter.

Business Impact and Strategic Considerations

  • Google’s Campus Strategy:

    • Google operates three buildings in Silicon Beach, but its long-term plans remain unclear.
    • The company reversed course on office expansion in L.A. last year, with Hudson Pacific and Macerich (development partners) not responsive to comments.

  • Competitive Landscape:

    • Potential dueling bids for the Venice property due to its uniqueness and prime location.
    • UCLA’s recent $700M purchase of a planned Google campus nearby underscores competitive dynamics in the area.

Long-Term Effects and Regulatory Implications

  • Investor Sentiment:

    • Strong interest in high-profile tech-related real estate assets suggests sustained demand for such properties.

  • Regulatory Environment:

    • No specific regulatory impacts mentioned, but future zoning or tenant laws could influence property values and occupancy plans.

Strategic Takeaways

  • For Investors:

    • High-profile, well-located assets in prime tech hubs remain attractive despite broader market fluctuations.

  • For Tech Companies:

    • Flexibility in real estate strategies is key, as seen with Google’s shift away from aggressive office expansion.

  • For Market Players:

    • Venice Beach and surrounding areas are hotspots for both tech companies and institutional investors, driving competitive bidding processes.