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Redmond Businesses Prepare for Economic Surge as Microsoft’s Return-to-Office Mandate Looms

Jan. 19, 2026 — Redmond, Wash. Microsoft will require most Puget Sound-area employees living within 50 miles of a company office to work onsite at least three days per week starting Feb. 23, sparking excitement among local small businesses anticipating increased foot traffic and sales near campuses such as Redmond Town Center and Millennium Corporate Park.

The policy, announced Sept. 9, 2025, by Executive Vice President and Chief People Officer Amy Coleman, marks a shift from broader remote work options toward a hybrid model with phased implementation across U.S. and global locations. Some roles may receive exemptions based on manager guidance.

“Our goal with this change is to provide more clarity and consistency in how we come together, while maintaining the flexibility we know you value,” Coleman wrote. “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.”

Local merchants, who have faced sales declines since the COVID-era remote work, expect revitalization. Joon Likitjesada, owner of Sip Thai Zoom, said,

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

Thomas Wilhite of Palmer’s added,

“We survived on Microsoft back in the day, and I’ve definitely seen a decline since they haven’t been around ever since COVID… 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 Microsoft spokesperson stated the company considers real estate strategies to align with flexible work expectations, fostering collaboration and community.

Ahead of the deadline, Microsoft renewed a nearly 400,000-square-foot lease at Redmond Town Center and secured about 900,000 square feet total in downtown Redmond, including reoccupying spaces at Millennium Corporate Park.

Redmond city officials 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.”

The mandate follows similar policies at Amazon and Meta, amid reports of employee pushback and resignations at Redmond campuses noted in online discussions.

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