Updating Google's NBS Master Plan
Table of Contents
June 7, 2024
Landings Project #
Due to an existing surplus of commercial and office real estate, the Landings project was suspended. Despite the loss of trees, Google is collaborating with the city on a plan to replace or move them. It’s important to note that REWS owns a sizable tree farm in Gilroy to meet the needs of all of its projects. Google has also been donating trees to various neighborhood nonprofits and cities to increase the overall tree canopy.
Two parking lots (Alta/Huff and 1851 Charleston) have been finished, providing the necessary parking for Google’s larger North Bayshore offices, including the new Gradient Canopy visitors and employees.
North Bayshore Master Plan #
Google, including SITELab, continues their efforts to make progress on the implementation of the North Bayshore Master Plan. Their current priority is identifying the most effective strategies for promoting residential development (both market rate and affordable housing) without introducing additional office space in the near future. Note: this scenario was not complemented when the master plan was approved.
Background #
Since the Covid-19 pandemic, the need for and worth of office space have dropped. When the worth of office space was higher, the intention was to utilize some of the earnings to help cover the costs of residential-related infrastructure. Note: NBS has some existing infrastructure thus making it more competitive to build more efficiently here than in other cities.
Due to the persistent high cost of construction, the execution of certain projects becomes increasingly challenging.
Following the mutual separation of Lendlease, Google is likely to collaborate with multiple residential developer to address opportunity as well as some of the current market challenges that have made residential construction more complex.
Ruth Porat, Alphabet’s Chief Investment Officer and former CFO, continues to put focus on optimizing the company’s real estate portfolio by discontinuing certain leases. This long-term strategy will help with REWS moving forward with its own developments.
Questions and Answers #
Q: Who is our Google contact now that Nikki Lowy and Brooke Ray Smith have left?
A: Michael Tymoff is still in charge of the development project, and Ricardo Benavidez is assisting him with community development. Ricardo Benavidez can be reached at benavidez@google.com.
Q: Will REWS [Real Estate and Workplace Services] have to change parts of the original very dense plan? For example, the NBS master plan added new north-south streets and one east-west street. There was also a “social spine”, and amenities like grocers, cafes, and shops that encourage pedestrian and bike traffic. Can those features be preserved?
A: Currently, no changes are planned. The eventual analysis will serve as the basis for any modifications.
Q: To what extent can we incorporate retail and amenities into the new residential developments?
A: Developers need to prioritize the implementation of a comprehensive retail and amenities plan to complement the initial phase of residential development effectively.
Q: What amenities will encourage tenants to live in the new apartments?
A: It’s crucial to provide a range of amenities that not only appeal to potential residents but also align with the needs of the surrounding community.
Q: Will traffic improve or keep getting worse with the concert season (as usual)?
A: Google is part of TDM [Transportation Demand Management], and REWS has an excellent member (Sophia Forde) who might be able to attend one of the Santiago Villa Neighborhood Association meetings. The team is personally incentivized to solve this problem because Sundar Pichai and Sergei Brin have offices on the MTV campus.
Q: Will affordable housing have to be set aside?
A: No. The City requires 15% of the new units to be affordable. Google will contribute land to the city for this purpose. In term, public financing could kick in. Note: the Notice of Funding Availability [NOFA] is a notice published each year in the Federal Register.
Originally 20% affordable units were intended for the project, but the additional 5% had been delegated to builders of the new developments. In this market, the 5% is a challenge for residential developers, since it requires a subsidy for which there is no public option.