Kaiser Permanente Cancels New $900 Million Oakland HQ: Report

OAKLAND, CA — Health care giant Kaiser Permanente is reportedly canceling plans to build a $900 million headquarters in Oakland that local officials had hoped would boost the city's economy.

The 29-story tower would have housed 7,200 employees from across Kaiser's East Bay operations, as well as more office space that could have been leased by other companies, according to the San Francisco Chronicle, which first reported the cancelation Tuesday.

The company told city officials this week that it was calling off the project. Instead, Kaiser will keep its current offices around Oakland, Mayor Libby Schaaf told the Chronicle.

“It’s a pivot for Kaiser, and one that makes sense for their organization and members at this time,” Schaaf said.

Schaaf said the cancelation was unrelated to the new coronavirus outbreak in the Bay Area.

Kaiser unveiled plans for the headquarters in June 2019. It would have been located 2100 Telegraph Ave. in downtown Oakland, slated to be completed in 2023.

Plans called for an estimated 1.7 million square feet of office space, 60,000 square feet of retail space at ground level, as well as an onsite clinic and 20,000 square feet of public space for "community-inspired art."

"This is going to be the biggest office building in Oakland," Schaaf said at the time.

Kaiser predicted in 2019 that the tower would contribute more than $15 million annually in local tax revenues.

Related coverage:

• $900M Project: Kaiser Permanente To Build New HQ
• New Kaiser Permanente HQ: City Council Clears The Way