Google And LinkedIn Agree To Trade Real Estate In Silicon Valley
Fierce competition for real estate between LinkedIn and Google experienced a rare thaw as the tech giants agreed to a major property swap. The exchange of office space allows each company to group its offices closer together and move away from the disjointed patchwork that exists today.
The cashless transaction will include 1M SF of existing property as well as 2.4M SF in various stages of development, according to the Silicon Valley Business Journal. The swaps also allow Google and the recently acquired LinkedIn to proceed with plans to build large, centralized office parks.
The deal is surprising given that the two companies competed for property in Mountain View's North Bayshore in 2015. Both companies realized North Bayshore was simply too small to build two major tech campuses and began conversations to trade office space.
Google has long eyed expansion in Mountain View’s North Bayshore district. The exit of LinkedIn from sites, including Lester Industrial Park, will allow Google to keep growth concentrated in that area.
LinkedIn gains 950 and 100 Maude and the former Palm headquarters in Sunnyvale as part of the deal. The professional social network plans to consolidate its Silicon Valley presence in Sunnyvale as it contemplates a future under Microsoft's corporate umbrella. [SVBJ]