Microsoft has renewed its lease for 396,228 square feet at Redmond Town Center, marking a significant development for the Eastside office market near Seattle. This agreement is one of the largest office leases in the region for 2025, according to a report by Broderick Group.
In addition to this renewal, Microsoft is reoccupying space at Millennium Corporate Park, encompassing approximately 480,000 square feet, after previously offering it for sublease. This decision comes as the company implements a new return-to-office policy, requiring employees to work in the office three days a week starting February.
Despite some substantial space reductions last year, including a 750,000-square-foot decrease at The Bravern in Bellevue, Microsoft’s recent commitments indicate a strategy to maintain its office footprint. The overall office vacancy rate in the area reached 21.8% in the fourth quarter, with Microsoft and Amazon's in-office policies significantly influencing the recovery of the Eastside office market.
Amazon, which has also adjusted its in-office requirements to five days a week, maintains a significant workforce in Bellevue and continues its construction projects in the area. Alongside these giants, various tech companies like OpenAI and Shopify are expanding their presence on the Eastside.