Lendlease said it will be compensated for its work during the planning process for the projects, which are located in San Jose, Sunnyvale and Mountain View, according to a statement Thursday.

“The decision to end these agreements followed a comprehensive review by Google of its real estate investments, and a determination by both organisations that the existing agreements are no longer mutually beneficial given current market conditions,” Sydney-based Lendlease said in the statement.

The projects would have totalled more than 1.4 million square meters of office, residential, retail, hospitality and community development space. The projects were also slated to bring more housing to California’s tight residential market.

Google still plans to work with developers and capital partners to move the projects forward, according to a spokesman.

“As we’ve shared before, we’ve been optimising our real estate investments in the Bay Area, and part of that work is looking at a variety of options to move our development projects forward and deliver on our housing commitment,” Alexa Arena, a senior director of development at Google, said in an emailed statement.

San Jose mayor Matt Mahan said he remains confident that Google will move forward with its planned 32-hectare mega development in his city.

“This news doesn’t change Google’s commitment to San Jose or their timeline,” he said. “It simply gives them the flexibility needed to get the best possible developers on the project to build 4,000 new homes in our thriving downtown.”