Technology giants Meta and Microsoft have now decided to vacate their office spaces in Seattle and Bellevue in United States. Facebook’s parent Meta announced it was subleasing its offices in Eighth Avenue North in downtown Seattle and Spring District in Bellevue, Seattle Times reported. It has also added the review of leases for other Seattle office buildings is underway.
On the other hand, Microsoft also said it will not renew its lease at the 26-floor City Center Plaza in Bellevue when it ends in June 2024. The move comes at a time when remote work and slowdown resulting in layoffs have been crucial factors in cutting demands for office space in Seattle and other places. Both the companies have adopted remote work in recent times.
In November, Meta had laid off 726 workers from areas around Seattle. The social media giant’s spokesperson said that the decisions were motivated by the company’s move towards remote work. She added that the company was also trying to be financially prudent. Currently, Meta occupies offices in 29 buildings and has a headcount of nearly 8,000 workers in Seattle.
A Microsoft spokesperson said the decision is driven by its ongoing evaluation of the firm’s real estate portfolio.
According to the report, the announcements by the two tech giants has brought more bad news to the office market in Seattle which is already struggling due to sluggish return of remote office workers. In downtown Seattle, the total office vacancy now stands at a low 25 per cent. The non-vacant offices are half empty because of remote work. Since last summer, the area has only seen 40 per cent of the workers present before the pandemic, a cellphone location data from Placer.ai by the Downtown Seattle Association stated.
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