Microsoft’s decision to renew a large swath of office space in Redmond is emerging as a key stabilizing force for the Eastside office market near Seattle.
That’s one takeaway from a new report by commercial real estate firm Broderick Group, which highlighted Microsoft’s renewal for 396,228 square feet at Redmond Town Center, just north of the company’s main headquarters campus. The deal was one of the largest office transactions on the Eastside in 2025.
Microsoft confirmed the new lease when contacted by GeekWire. The tech giant also confirmed a report from the Seattle Times that it is reoccupying space at the Millennium Corporate Park location in Redmond, where it has about 480,000 square feet. The company had previously offered that space for sublease.
While Microsoft was responsible for some of the region’s largest space givebacks last year — including a 750,000-square-foot reduction at The Bravern in Bellevue — the latest commitments suggest the company is holding onto its remaining footprint as it begins enforcing a new return-to-office policy. This past September the company announced that it would implement a three-day in-office requirement, starting across the Seattle region in February before expanding to other U.S. locations and eventually globally.
Both Microsoft and Amazon — and their respective in-office policies — appear to be playing an outsized role in determining how quickly the Eastside’s office recovery takes shape, even as overall vacancy reached 21.8% in the fourth quarter.
Amazon, which last year increased its own in-office policy from three to five days a week, continues building out major projects in Bellevue, including Bellevue 600, The Artise, and West Main. The company employs more than 12,000 people in Bellevue as part of what it calls its “Puget Sound headquarters” which also includes its Seattle campus. Amazon cut 14,000 workers in broad layoffs in October, with 2,303 corporate employees in Washington state.
A growing roster of technology companies has also signed new or expanded leases on the Eastside in recent years, including OpenAI, Snap, Anduril, Shopify, Snowflake, Walmart, and Chewy.
“Notably, a growing number of new-to-market entrants … are choosing the Eastside over Seattle, drawn by Bellevue’s modern office inventory, business friendly climate and skilled technology workforce,” Broderick’s report noted.
Despite the positive signals, the firm cautioned that vacancy is unlikely to fall sharply in the near term. Downtown Bellevue’s vacancy rate stood at 25.4% at the end of the year.
The report also noted that more than 1% of the Eastside’s office inventory has been removed through office-to-residential conversions.
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