General Motors is considering consolidating its Bay Area operations into a single campus in Silicon Valley, according to sources cited by the San Francisco Business Times. The move would reduce GM’s local footprint from more than 1 million square feet spread across eight to ten properties to about 400,000 square feet at one site.
The automaker currently has offices in several cities including San Francisco, Mountain View, and Palo Alto. If the consolidation occurs, several thousand employees could be relocated to the new campus. The six-building Tech Corners office complex in Sunnyvale is reportedly a leading candidate for the new headquarters. Earlier this year, Walmart’s e-commerce division became a tenant at that complex.
GM has had difficulty finding subtenants for some of its San Francisco office space. The company is reportedly seeking to finalize a lease within the next two months, as many of its current leases expire between 2026 and 2028.
The Silicon Valley office market has become increasingly competitive due to an influx of AI companies and tech workers moving into the area for job opportunities. Office vacancy rates have declined for four straight quarters while demand for high-quality spaces has increased. No new office buildings are currently under construction.
Sunnyvale has emerged as a hub for technology firms seeking office and research space. For example, Databricks signed a 305,000-square-foot lease in downtown Sunnyvale earlier this year. Across Silicon Valley, AI companies now occupy over 6 million square feet of office space, based on data from CBRE referenced by the Business Times.
GM appears interested in expanding its AI and advanced software work beyond its existing AI research team in Mountain View. The company has recently hired AI leaders from major technology firms such as Alphabet, Meta, and Amazon.
“GM will have to act fast, as the office market in Silicon Valley has gotten tighter as more AI companies set up shop and workers migrate to the region for jobs,” according to information reported by the San Francisco Business Times.
