Microsoft’s Redmond Lease Renewal Boosts Eastside Office Market Amid Seattle Growth

Microsoft has made a significant decision to renew a large amount of office space in Redmond, which is proving to be a stabilizing factor for the Eastside office market near Seattle.

A recent report by Broderick Group highlighted Microsoft’s renewal for 396,228 square feet at Redmond Town Center, positioning it as one of the major office transactions in the Eastside in 2025.

Microsoft confirmed this new lease and also announced its reoccupation of space at the Millennium Corporate Park location in Redmond, totaling around 480,000 square feet.

While Microsoft had previously reduced space at The Bravern in Bellevue, their latest commitments indicate a shift towards holding onto existing space as they implement a new return-to-office policy.

Microsoft’s actions, alongside Amazon’s in-office policies, are influencing the pace of the Eastside’s office market recovery, despite an overall vacancy rate of 21.8% in the fourth quarter.

Amazon, with its increased in-office policy, continues to expand its presence in Bellevue with projects like Bellevue 600, The Artise, and West Main, employing over 12,000 people in the area.

A number of tech companies, including OpenAI, Snap, Shopify, and Walmart, have also signed new leases on the Eastside, drawn by Bellevue’s modern office spaces and skilled workforce.

Despite these positive developments, the Eastside’s office vacancy rate is not expected to decrease significantly in the near future, with Downtown Bellevue’s vacancy rate at 25.4%.

Additionally, the report highlights that more than 1% of the Eastside’s office inventory has been converted to residential spaces, impacting the overall market dynamics.