Microsoft, a major driver of office demand on the Eastside with about 15 million square feet of owned and leased office space, is in the final stages of decommissioning leased space, according to a recent Q3 2023 Eastside Market Overview by the Broderick Group. They are currently operating their leased facilities with reduced utilization as the company diligently focuses on cost-cutting measures. Microsoft has already vacated a significant portion of its leased buildings, with leases set to expire in the next two years, including a remarkable 2.7 million square feet in both the Bellevue CBD and the I-90 Corridor. Moreover, an additional 600,000 square feet of space is now available for sublease in East Redmond, primarily at Millennium Corporate Park.
Microsoft’s primary objective is to consolidate employees who choose to work from an office to their Redmond Campus while fostering an active sense of place. However, the $5 billion campus renovation and expansion project has been partially halted. Out of the planned 17 new buildings, five will remain in a shell condition, and four will not be constructed at all. Initial deliveries for the main campus expansion are anticipated to commence later this year. Additionally, Microsoft has sold a building on its campus and abandoned the long-planned RedWest expansion on the former Nintendo land, which would have added over 1.1 million square feet of additional office space.