Meta and Microsoft are vacating office buildings in Seattle and Bellevue in United States' Washington amid mass layoffs and work from home option.
As per reports, Meta is reviewing "leases for Seattle-area office buildings". Facebook has confirmed plans to sublease its offices in downtown Seattle and in the Spring District in Bellevue. Microsoft also confirmed that it won't renew its lease at the 26-story City Center Plaza in Bellevue when that lease ends in June 2024.
A Meta spokesperson said that given the economic climate, it is trying to be financially prudent." The Seattle office market is now struggling "where total office vacancy now stands at around 25 per cent," according to a report by commercial real estate agency Colliers.
Even non-vacant offices are often half empty, owing to remote work. "Given the macroeconomic conditions and the hybrid work trend, we believe we'll see an uptick in office vacancy over the next couple of quarters," Connor McClain, Senior Vice President and leasing expert at Colliers.
The ongoing work-from-home and layoffs have cut into demand for office space in Seattle and other tech cities in the US. In November, Meta announced layoffs of 726 Seattle-area workers.
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