Google has scrapped a $15 billion development deal that would have benefitted California’s Silicon Valley with new modern office parks, affordable housing, and mixed-use districts, according to reports published by CNN and Reuters late Friday.

The deals struck with Australian multinational Lendlease cover planned developments in and around Santa Clara County, California, including Sunnyvale and three others in San Jose and Mountain View. Google had previously announced its plans to reduce its company size by about 6% at the beginning of the year.

Both Lendlease and Google had released statements expressing their continued pursuit of the projects in April when the San Jose Downtown West development’s start of construction was put on hold indefinitely. Lendlease now says the four-year-old deal is no longer “mutually beneficial given current market conditions.”

The news strikes a major blow to the faltering local commercial real estate market. In the past quarter alone, the region has seen its office vacancy eclipse a ten-year high.

Kohn Pedersen Fox, Heatherwick Studio, SHoP, Grimshaw, and several other leading firms had signed design contracts for various aspects of the project. Google will apparently look towards other developers to deliver the planned 15,000-unit housing component of the original deal, though no further construction plans have been announced as of this time.