Meta and Microsoft are vacating their office buildings in Seattle and Bellevue in Washington State as office rentals drop in the city of San Francisco majorly amid remote work and massive layoffs. The Seattle Times reported that Meta is currently reviewing the leases for Seattle-area office buildings.
Facebook has confirmed its plans to sublease the company’s offices in the Spring District in Bellevue and downtown Seattle. Microsoft also confirmed that it will not be renewing its lease for the 26-story City Center Plaza in Bellevue when its lease ends in June 2024.
The ongoing layoffs and work-from-home culture have cut the demand for office space in Seattle and other cities in the US. In November, Meta announced layoffs of a total of 726 Seattle-area workers. A Meta spokesperson explained that given the economic climate, the company is trying to be financially prudent.
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According to commercial real estate agency Colliers, the Seattle office market is struggling, and the total office vacancy now stands at around 25%. Even non-vacant offices are often half-empty because of the remote work option.
Connor McClain, senior vice president and leasing expert at Colliers, said, “Given the macroeconomic conditions and the hybrid work trend, we believe we will see an uptick in office vacancy over the next few quarters.”
