Facebook Investing $7.5 Million in SODO Office Space

Facebook will soon be expanding its foot print in SODO, this according to a recent article published by the Puget Sound Business Journal, which indicates that the social media titan is investing $7.5 million into office space renovations at the Home Plate Center building. After initially indicating that they would lease a full floor at the office tower earlier this year, permits filed with the city of Seattle show that “Oculus” (the virtual reality arm of Facebook) has leased over 62,000 square feet.

The company intends to complete extensive renovations totaling $7.5 million to make changes to spaces across three floors: 25,773 square feet on the fourth, 10,300 square feet on the sixth, and 26,300 on the seventh. As PSBJ outlines, the American Life developed building designed the fourth floor for “data center use,” and it “can accommodate up to 550 server racks and has two private outdoor decks.” The sixth and seventh floors have stellar Seattle views and there are two more private outdoor decks on the latter.

Facebook has been hiring new employees at a rapid rate in the Puget Sound, making headlines for growth both in Seattle and on the Eastside. The Facebook Reality Labs/Oculus division “was hiring faster in Redmond than at the Facebook’s Menlo Park headquarters when the Business Journal tallied job postings last month.”

THE U.S. IS NAMED MOST COMPETITIVE ECONOMY IN THE WORLD

THE TOP 3 OF 10 MOST ATTRACTIVE U.S. EMPLOYERS ARE IN SEATTLE

Seattle and the Eastside are both benefiting from an influx of technologically-driven growth, both from Amazon and other companies including Facebook, Apple, Google and more.

"Seattle’s relative affordability, high quality lifestyle, lack of a state income tax and investment in transportation infrastructure will give the Seattle metro area a strong competitive advantage over other West Coast tech centers.” - Dean Jones, President & CEO Realogics Sotheby’s International Realty. 

Seattle Tech Update

  • Amazon now owns twice as much office space as it did in 2016 and will reportedly occupy 15 million square feet of office space throughout downtown Seattle with current commitments. 

  • Apple is expanding within Two Union Square with more than 70,000 sq. ft. to office 500 employees (rumors persist that it is making offers on larger office space).

  • Google continues to expand in South Lake Union (with five buildings either under construction or in planning), comprising nearly 1 million sq. ft. of office space with occupancy expected by early 2019 – the downtown Seattle campus could employ more than 4,500 people.

  • Facebook has opened a new campus at 1101 Westlake in addition to other leaseholds in South Lake Union with current capacity for 3,000 employees. The social media giant recently applied for permits for Oculus expansion of more than 60,000 sq. ft. of office space in the Home Plate Center near Safeco Field in SODO.  It’s presumed the company leased all 124,000 sq. ft. of the available space, but is merely building out the first half at this time with future plans to grow into the remaining space.

    🚨FACEBOOK PLANS MASSIVE, MYSTERIOUS 'BUILDING X' (OCULUS VIRTUAL REALITY LABS) PROJECT IN REDMOND🚨

  • F5 Networks has leased 516,000 sq. ft. in a new office tower (now called F5 Tower) with an estimated 1,500 employees and room to expand. Excess office space is temporarily being sublet and attracting other employers.

  • Expedia plans to relocate its Bellevue headquarters to Interbay (Seattle waterfront) in 2019 in what may eventually comprise of 1.9 million sq. ft. of office space for approximately 8,000 employees (recent indications suggest the company will moderate its growth in measured phases). Many Bellevue-based employees will either relocate to Seattle or face an arduous commute. 

  • WeWork Northwest continues to expand in the Seattle region and is eyeing a total of 2 million sq. ft. of office space in the greater Seattle area with new commitments in the World Trade Center North building and a 36-story tower being developed in Belltown (this tenant is critical for future growth in tech as many startups are incubating in co-working environments).

Eastside Tech Update

  • Amazon occupies one office tower in Bellevue with 2,000 employees and plans for another with the potential of adding another 2,500 employees by 2020 - that's about 10-percent of the regional headcount.

  • Vulcan Real Estate is planning 3 million sq. ft. of office space - likely to target additional expansion of Amazon and other tech users. This developer is very close to the tech growth, and their commitment to Bellevue is a strong signal of additional tech expansion in the region.

  • Tableau Software has preleased 180,000 sq. ft. of Kirkland Urban for occupancy in 2019. 

  • Facebook will reportedly develop 650,000 sq. ft. of office space in Redmond and along Willows Road for their Facebook Reality Labs/Oculus campus, according to public records.

  • Microsoft is doubling down on its own campus rebirth with a multi-billion-dollar expansion that could office upwards of 8,000 employees. The direct connection to LINK light rail means Microsoft employees could choose to live in downtown Seattle or downtown Bellevue and enjoy reasonable commutes to Redmond. 

  • SRM is planning a 136,000 sq. ft. building adjacent to Google's Kirkland campus, likely for Google’s continued expansion. 

  • Rumors persist about expansion of Alibaba and other international tech companies seeking growth in the region (including potential leases at Southport on the Renton waterfront).

  • While not tech-oriented, Costco Wholesale recently announced plans to expand it’s Issaquah headquarters by 1.2 million sq. ft. with room for 4,000 employees. Again, eventual LINK light rail service to Issaquah affords employees the option of living in an urban market and commute by train to work.

For more updates, read the full article here >>

TECH.jpg

Commercial developers are clearly optimistic. Nearly 2 million sq. ft. of speculative office space is currently under construction in downtown Seattle with occupancy by 2020. That space will eventually attract additional companies and an estimated 13,000 new jobs will be created in the relative near term.

WASHINGTON STATE CONVENTION CENTER CONSTRUCTION IS UNDERWAY IN SEATTLE

10 MOST PROMINENT TRANSPORTATION INITIATIVES IN PUGET SOUND

🌬️🏘️WHAT TO MAKE OF SEATTLE’S MARKET COOLDOWN