Google continues to expand its office footprint, but at least one project is facing construction delays. The tech giant’s buildout of One Westside in Los Angeles is facing delays and has pushed its move-in date to next year. The 584,000-square-foot building is owned by Hudson Pacific Properties and Macerich, and Google initially planned to move in this year.
Google announced a 14-year lease for all of the One Westside office space three years ago, a former shopping mall at 10800 Pico Boulevard in Rancho Park, an LA neighborhood. According to financial filings, Hudson Pacific expects Google to occupy the space in the second quarter of 2023 and the tech firm is already paying rent at the property. Hudson Pacific reported additional revenue of $28.3 million from January to June this year due to their agreement with Google and another Google acquisition of a 200,000-square-foot property in Seattle.
Though Google has declined to comment, rising construction costs could be a reason behind the delays for the One Westside office. Construction costs in Los Angeles and San Francisco have spiked 21 percent from January 2021 to this month, according to a California building cost index. Construction labor is also pricier, as compensation for all private industry workers in LA increased 4.5 percent year-over-year in June.
Despite the rising building costs, Google is one of the few tech companies that keep gobbling up new office space. One Westside will be an additional office hub for Google in LA, increasing its overall footprint in West LA to more than 1 million square feet. As more big, multinational firms whittle down their office footprints, Google’s aggressive real estate strategy remains a bright spot in the market.