Microsoft to Forgoe Plans For South Lake Union Move
Microsoft announced that its interest in expanding its operations is now on hold due to the deteriorating economy. This move puts further strain on an already struggling city economy. For months, Microsoft had been in negotiations to lease all 300,000 square feet of office space located at 2201 Westlake. However, due to the degrading national economic situation and changing market conditions, Microsoft has decided not to pursue those negotiations.
Microsoft’s decision to not continue leasing negotiations is indicative of CEO Steve Ballmer’s statements at the company shareholder meeting. Ballmer stated that the company would have “much, much slower growth” pertaining to the size of its work force for this year and the year after. This is evidenced by the hiring disparity between October and November where the company went from hiring 1,000 new employees, to 380 in November.
Microsoft has also mentioned that its recent expansion and new campus buildings aren’t necessarily being used for new workers, but more to consolidate their employed workforce. Rather than having teams in different buildings, Microsoft is redistributing where teams for different endeavors are being located.
The impact this will have on Seattle is a loss of a small economic boon to the city that would have opened up a number of opportunities for local businesses. For example, gym memberships, restaurants, and any myriad of different businesses would have benefited greatly from the move.
Until the market stabilizes, it seems Seattle will have to wait before company expansion into the city will be considered again.
Subscribe by RSS