Jan. 9, 2026 — Redmond, Wash. Microsoft renewed its lease for 396,228 square feet at Redmond Town Center, a mixed-use development north of its headquarters, and confirmed reoccupation of 480,000 square feet at Millennium Corporate Park, which it had previously subleased.
These commitments, totaling nearly 900,000 square feet, represent some of the largest office transactions on Seattle’s Eastside in 2025 and help stabilize a market with 21.8% vacancy rates, ahead of the company’s three-day-per-week return-to-office mandate for Puget Sound employees effective late February 2026.
The Redmond Town Center renewal, first reported by the Puget Sound Business Journal on Jan. 5, was completed in the final months of 2025. Millennium Corporate Park reoccupation followed the withdrawal of its sublease listing in August 2025, amid preparations for the RTO policy requiring in-office presence at least three days per week for employees within 50 miles of a Microsoft office in the region.
“We’ve looked at how our teams work best, and the data is clear: when people work together in person more often, they thrive — they are more energized, empowered, and they deliver stronger results.”
— Amy Coleman, Microsoft Executive Vice President and Chief People Officer [https://www.seattletimes.com/business/microsoft/microsoft-scoops-up-redmond-office-space-before-rto-deadline]
The moves signal confidence in the Eastside office sector, where Downtown Bellevue vacancy reached 25.4% in the fourth quarter. According to a Broderick Group report cited by GeekWire, new tenants, including OpenAI, Snap, Anduril, Shopify, Snowflake, Walmart, and Chewy, are choosing the area for its modern inventory and workforce.
Local businesses anticipate an economic boost, as reported by KOMO News. The deals contrast with Microsoft’s prior reductions, such as vacating 750,000 square feet at Bellevue’s The Bravern Towers. Over 1% of Eastside office inventory has been converted to residential use, limiting sharp vacancy drops.
Other coverage includes Connect CRE on the RTC renewal and The Registry PS, highlighting it as an investment signal.
