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Redmond Businesses Brace for Economic Boost from Microsoft’s Return-to-Office Mandate

Jan. 13, 2026 — Redmond, Wash. Small business owners in Redmond are anticipating a surge in foot traffic, lunch crowds, and after-work visits as Microsoft rolls out a return-to-office policy requiring Puget Sound-area employees living within 50 miles of company offices to work onsite at least three days per week starting February 23.

The policy, announced September 9, 2025, by Executive Vice President and Chief People Officer Amy Coleman, aims to enhance collaboration in the AI era. “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,” Coleman stated in the company blog post.

Local restaurants and shops near key sites like Redmond Town Center and Millennium Corporate Park expect revitalized weekday business after years of remote work decline. Joon Likitjesada, owner of Sip Thai Zooom in downtown Redmond, said,

“I’m not selling the food. I sell the experience with the employee who can talk to the customers.”

She anticipates Microsoft employees returning for meetings, lunches, and work parties, potentially allowing expansion (KOMO News).

Thomas Wilhite, owner of Palmer’s nearby, noted the post-COVID drop-off: “We survived on Microsoft back in the day, and I’ve definitely seen a decline since they haven’t been around ever since COVID.” He added, “It’s got to be a win-win. How could it not? The more people that are out and about, it’s a win-win.”

A Redmond city spokesperson welcomed the change: “The City of Redmond welcomes the energy that comes with more people returning to local workplaces. We look forward to these employees reconnecting with the restaurants, shops, and small businesses that make Redmond such a vibrant community.”

KOMO News video report (Jan. 10, 2026): Local businesses prepare for Microsoft RTO impact. Source: KOMO NEWS 4

Microsoft has reinforced its onsite commitment by renewing a nearly 400,000-square-foot lease at Redmond Town Center and reoccupying 480,000 square feet at Millennium Corporate Park in late 2025, ahead of the deadline (The Seattle Times). A company spokesperson stated these moves align physical footprints with flexible work expectations.

City officials and owners foresee reduced vacancies, hiring upticks, higher sales taxes, and stable property values from thousands of returning employees.

The policy follows similar mandates at Amazon and Meta and includes a phased U.S. and global rollout, with exceptions available.

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