Google office lease moves D.C. teams near the Capitol hub

Google signed an office lease at 500 North Capitol Street NW in Washington. A report said it may take most of the 231,000-square-foot building.

North Capitol Street lease

The exact square footage was not disclosed, leaving the final size of the commitment unresolved. If Google occupies most of the property, the lease would rank among the larger office deals reported in the Washington area this year.

The building sits near Union Station and the Capitol, a location that gives tenants quick access to Congress, federal agencies and the city’s core legal and lobbying corridors. For Google, the address would place more of its local workforce closer to the government offices that shape technology policy.

Several years of consolidation

Google plans to bring several existing D.C. offices into the North Capitol Street site, according to the report. The move is expected to unfold over several years, with interior construction scheduled to begin in the next few months.

That timetable means the lease is not just a near-term occupancy decision. It is also a construction and workplace planning project, with the company needing to fit teams, meeting space and security requirements into one building before the consolidation is complete.

John Connell, a Google executive, said the move reflects a continued commitment to Washington. "This move reflects our commitment to working constructively with the government and our long-term investment in the DC community," Connell said in a statement.

McDermott space changes hands

Google is expected to take space now associated with McDermott Will & Schulte, the law firm that is leaving the property. The shift would move a major technology company into space vacated by a legal tenant, a trade that fits Washington’s mix of policy, law and corporate government affairs work.

The lease terms were not disclosed, including the rent, duration and any concessions attached to the deal. Those missing details matter because large office leases often depend on buildout costs, tenant improvement allowances and the timing of when occupied space begins generating income.

500 North ownership structure

Azora Private, previously known as Exan Capital, is the majority owner of 500 North Capitol Street NW. BXP holds a 30% stake in the property, according to the reported ownership structure.

BXP co-developed the building in 2010 with Clark Enterprises. Clark later sold its 70% interest, leaving the current ownership split led by Azora Private with BXP as the minority partner.

The property’s ownership history matters because a large lease can affect how investors view an office asset in a market still adjusting to hybrid work. A long buildout period can also delay the full effect of a new tenant, even when the lease itself has been signed.

Hybrid work meets federal proximity

Google had previously pursued a space-cutting strategy as hybrid work changed how many companies used offices. The Washington lease points to a more targeted approach: reducing scattered locations while keeping a large physical presence where government relationships are part of the business.

For the local office market, the immediate signal is tenant demand for well-located space rather than proof of a broad recovery. A single large lease can help one building and its owners, but it does not settle vacancy, pricing or leasing conditions across the city.

If Google completes the consolidation as described, the company would gain a more unified D.C. base near federal decision-makers, while landlords could cite the deal as evidence that major tenants still value central Washington space. If construction timelines stretch or the occupied footprint is smaller than expected, the benefit would be narrower and slower to show up for the building and the surrounding office market.