In yet another sign of its commitment to the Puget Sound region, Facebook expanded its footprint by taking 85,000 square feet in two buildings owned by Kilroy Realty in Bellevue. The lease was announced in Kilroy’s third quarter numbers earlier this week.
The 85,000 square feet is spread across two buildings in the Eastside city, the Key Center, located at 601 108th Ave. NE, and the Skyline Tower, located at 10900 NE 4th St. According to sources with direct knowledge of the lease, Facebook took two floors in each building. At the Key Center, the company took the top two floors, which were previously occupied by Merrill Lynch, and the two floors at the Skyline Tower were previously occupied by Valve.
Both companies relocated to Lincoln Square South, the 1.5 million square foot mixed-use development that Kemper Development Company opened in 2017.
Facebook signed leases at the two buildings for 10 years, according to Kilroy.
The Skyline Tower is a 416,755-square-foot building developed in 1983, and the Key Center is a newer vintage structure built in 2000 and standing at 488,479 square feet. Both buildings are located in the Bellevue central business district.
Earlier this summer, The Registry reported that Facebook was eyeing a an expansion in Bellevue as a possible precursor to the company’s broader initiative through the region. According to the industry source with knowledge of the transaction, Facebook was considering a much larger lease in the under-construction, 36-acre Spring District Development east of downtown Bellevue.
According to the web site for the property—which Wright Runstad is developing—there are approximately 433,444 square feet available across 10 floors in the Block 16 Building and roughly 166,614 square feet of space available in the Block 24 Building.
Construction is underway on the Spring District—which when fully built out will comprise 5.3 million square feet of office, residential and retail space—and office space will be ready for occupancy in January 2020 in the Block 16 Building and first quarter 2021 in Block 24.
Along with the leases signed in downtown Bellevue, Facebook has been making its presence known in Redmond in recent months. In January 2018, the company acquired two high tech/flex buildings in Redmond totaling just over 72,000 square feet for $20 million from Redmond-based Crane Aerospace Inc. Facebook has amassed nearly 700,000 square feet of office space across a number of properties around Redmond’s Willows Road, according to sources with direct knowledge of the company’s activities in the region.
Across other areas, too, Facebook continues to explore the growing world of virtual reality. In mid-August 2018, BuildZoom tracked $106 million in construction and development permits filed over the past three years for Facebook Oculus’ offices in Redmond. Analyzing data from BuildZoom’s National Permit Database, the company found that of more than 180 permits were filed, issued and finalized for Oculus projects across 11 buildings in Redmond. In total, Facebook had spent more than $106 million since July 2015 to develop labs and offices there, with $88.3 million of those permits filed in 2018 alone.
Across Lake Washington in Seattle, too, Facebook has made statements of intent about its plans to expand its footprint in the Emerald City. In mid-March 2018, the company showcased its new 6-story, 150,000 square foot Westlake Office located at 1101 Westlake Ave. N. in South Lake Union. The Westlake Office, which houses the company’s second largest engineering office outside of its Menlo Park headquarters, has room for 900 additional employees. The project is across the street from Dexter Station, a roughly 346,000 10-story Class A office building, which the company has occupied since early 2016 and which is now home to approximately 2,000 employees.
In December 2016, the company signed a lease with Vulcan Real Estate for the 384,000 square foot Arbor Blocks campus in the heart of South Lake Union. The development—available in 2018, according to the project’s web site—will consist of two 6-story mid-rise office buildings and 4,100 square feet of street-level retail along 8th Avenue North between Thomas and Harrison Streets.